The WRA's September housing report came out earlier this week, and the most obvious take-away is that the big price increases we saw earlier this year have had an effect on the autumn market.
August WRA housing report
Dated: September 22 2020
August was again a strong month for real estate in Wisconsin. Statewide, home sales were up .7% over the same month in 2019. The median list price also increased just over 14% from August 2019 to $235,000. This continues a trend that has seen Wisconsin home prices increase nearly 10% since April 2020. Of the 72 counties in the state, 57 saw increase in prices.
Dane county surpassed statewide numbres in August, with 872 sales, a 2% increase from August 2019. The average sales price stood at $324,900, an 8.3% increase over the same month last year, and third highest in the state, behind only Ozaukee and Waukesha counties respectively. Months of inventory for Dane county--an indicator of whether the market is trendding towards buyers or sellers--held steady at 3.4%. A reminder, 6 months of inventory is considered a balanced market, with anything below that favoring sellers.
Why are prices continuing to trend upwards? Predominantly because supply is not meeting demand. In August, listings statewide were down nearly 25%, whiles sales increased. This continuing strong demand is pushing prices higher. Record low interest rates have kept homes relatively affordable, and those rates are expected to remain low for the foreseeable future.
What does this mean for you? If you are considering a home purchase, expect there to be competition (depending on the home), at times intense. As I've written before though, there are ways avoid this competition and still come away with a house. For sellers, if you have considered selling, now is definitely the time.
In November of 2000, I closed on my first house, a rough-around-the-edges 1922 colonial with lots of sun, not a lot of storage, and an enormous oak tree in its postage stamp-sized back yard. From the ....
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