November home sales jump 19% statewide
Year could see a record; prices are up, too
Wisconsin’s housing market continued its strong pace in November, with sales jumping 19% from the same month a year ago and the median price rising more than 8%.
The Wisconsin Realtors As- sociation reported Monday that November sales totaled 5,789, up from 4,866 in November 2015.
The median November sale price of homes sold in the state increased 8.3%, to $162,400 from $150,000.
Through the first 11 months of 2016, sales were up 5.9% to 75,602 from 71,374. The statewide median price was 5.4% higher than the same time in 2015, to $165,000 from $156,500.
“This has been an excellent
year for sales, and unless the tight inventories keep December sales down, we should see a record year for the Wisconsin housing market,” Erik Sjowall, chairman of the Wisconsin Realtors Association Board, said in a statement.
Every region in the state saw growth in sales in November, with all but one region up by doubledigit margins over the past year.
With sales brisk and a shortage of homes for sale, prices have been going up.
Sales in four regions grew more than 20% between November 2015 and November 2016. The South Central region rose only 4.1%, but that’s because of a scarcity of homes on the market in Madison and Dane County.
“We’ve been concerned about the limited supply all year, and inventories fell even further in November,” Sjowall said.
Michael Theo, president and chief executive of the Wisconsin Realtors Association, said the “steady increase in prices is predictable given our low inventory situation.”
He said the improving economy is fueling demand, as are mortgage rates that remain low.
The realtors organization noted a 30-year fixedrate mortgage was only 3.77% in November, down from 3.94% at the same time a year ago. But rates could rise in 2017.
“The Fed is clearly concerned that the strengthening economy is going to be inflationary unless it raises rates, so this will likely put upward pressure on mortgage rates over the next year,” said Theo. “It’s important to emphasize that we are only about a half-percent above the all-time low for the 30-year fixed-rate mortgage, so this is still an excellent time to get a mortgage, but buyers need to be prepared to move quickly when they find the right home.”