Monday, June 22, 2015 / by Jen Koenig
The Wisconsin Realtors Association (WRA) just released it's monthly market report for the month of May. They found that the Wisconsin housing market continued it's expansion, and we've just had the strongest 5-month start to the year since 2007! For May specifically, we saw the strongest sales since 2006.
Across Wisconsin we're seeing a growth in sale price, with a median price increase of 6.7 percent over the 2007 data. Sales in every region of the state are moving in a positive direction. Here in the South Central region (which includes Dane County) we had about an 8% increase in sales between last year and this year.
More great news is that the median price increases are exceeding the rate of inflation. Comparing May 2015 to May 2011, prices have grown by 4.1 percent (3.1 times the inflation rate over the same period). Michael Theo, the WRA President and CEO, stated "While we usually don't like to see housing appreciating at three times the rate of inflation, it's important that we've been in a very low inflationary period since the recession. Home price growth in the 4 percent range is sustainable when compared to longer term trends in inflation."
Of course sellers like hearing that we're seeing a growth in price, but is there good news for buyers? The answer is yes. The report also found that housing affordability is remaining high in the state. They cite the Wisconsin Housing Affordability Index, which figures out the affordability of the median priced home for a buyer with the median family income (assuming the buyer puts 20% down and gets a 30-year mortgage at current market rates). The index is currently at 226, which is "virtually unchanged" from last year at this time. How is this possible with prices increasing? It's a combination of improvement in the median family income in the state and lower mortgage rates. On a statewide level, housing inventory is in good shape, though we're seeing lower inventories in metropolitan areas like Madison, and across the board we're beginning to see available housing inventory shrink. Since inventories are tightening, and higher mortgage rates are expected soon, this is actually an ideal time to buy.
If you're thinking of buying a new home, it's time to start shopping! Contact us today - we'll set you up with an experienced Buyer's Agent who will be happy to get you in to see the homes on the market. Additionally, we have several upcoming listings which aren't on the market yet that might be perfect for you! If so, we can get you in to see them before any other buyer gets the chance & get you the best deal possible! Email, call, or text your agent if you're already signed up on our site, or click on any home in our inventory and request a showing.