Wisconsin home sales and prices increased in January
The market for existing homes in Wisconsin is off to a good start this year, with January sales and prices increasing from the same time in 2017.
The Wisconsin Realtors Association said Monday there were 3,971 closings in January, or 2.8% more than 3,862 in January last year.
The median price of homes sold in January was $168,500, or 6.8% more than $157,700 in the same month a year ago.
The increased sales came despite a short supply of homes on the market.
“Tight inventories dominated Wisconsin’s housing market throughout 2017, and that challenge has continued into the first month of the new year,” Peter Sveum, chairman of the Wisconsin Realtors Association, said in a statement.
While the supply of homes for sale is tight, jobs are abundant in a strong state economy with low unemployment, the state Realtors organization said.
The Wisconsin unemployment rate was 3% in December and jobs grew by more than 86,800 between December 2016 and December 2017, the Realtors noted.
“Strong economies typically translate into strong home sales,” Sveum said. “The only factor holding us back from an even stronger housing market is lack of supply.”
The limited supply is putting upward pressure on prices. The $168,500 median home price was the highest January level since the Realtors began tracking housing metrics in 2005.
“Rapid price growth is a result of high demand, fueled by a great economy and very low mortgage rates,” said Michael Theo, president and chief executive officer of the Wisconsin Realtors Association, said in the monthly report.
While mortgage rates are rising, they still are low by historical standards. The 30-year fixed-rate mortgage increased to 4.15% at the end of January.
“The good news is low mortgage rates, combined with solid income growth have kept our housing affordable, even as home prices have grown at a rapid pace,” Theo said.