Wisconsin Real Estate Market Update: February 2025 Trends by Top Realtor in Madison, WI Amber Huemmer

If you're looking for a trusted Realtor in Wisconsin, understanding the latest housing market trends is essential. February 2025 brought some significant changes to the state’s real estate landscape, and whether you're planning to buy or sell a home, these developments could impact your strategy. 

After modest growth in January, Wisconsin home sales bounced back in February with a strong 7.0% increase compared to the same month in 2024. Specifically single-family home prices in Madison, WI were up 10% over the same period. That’s more than three times the growth rate seen at the start of the year, signaling renewed activity in the housing market. Year-to-date, Wisconsin home sales are up 4.4% over the first two months of 2024, showing a solid pace even in a tight inventory environment.

Inventory, however, remains a challenge. The total number of homes for sale in Wisconsin hovered just above 16,000 in February (Madison had 209 single-family home listings). To reach a balanced market—typically defined as having six months of available supply—listings would need to more than double. Currently, the state has just 2.8 months of inventory, down slightly from 2.9 months in February 2024. Five out of six regions across Wisconsin saw months of supply fall, with only the North region experiencing any improvement.

As inventory has tightened, home prices in Wisconsin have surged. The median home price hit $304,900 in February, representing a 10.9% increase over the previous year. Madison, WI has a median list price of $475,000. Looking at the year-to-date numbers, the median price for the first two months of 2025 stands at $300,000, up 11.1% compared to the same period in 2024. This rapid appreciation is great news for sellers, but it’s making it more difficult for buyers to afford homes—especially with mortgage rates remaining elevated.

The average 30-year fixed mortgage rate in February was 6.84%, just slightly higher than February 2024’s average of 6.78%. These persistently high rates, combined with rising home prices, continue to strain affordability. The Wisconsin Housing Affordability Index dropped to 125 in February, down from 139 a year earlier—a 10.1% decrease in buyer affordability. This index measures the percentage of the median-priced home that a family with median income can afford, assuming a 20% down payment and current interest rates. Lower numbers reflect tighter financial conditions for potential home buyers.

Adding to the pressure, new listings declined 12.2% year-over-year. (Madison, WI fell 4.31%) While total listings stayed flat, the drop in fresh inventory means buyers are facing stiffer competition for fewer available homes.

In this market, working with an experienced Wisconsin Real Estate Agent like Amber Huemmer, with over 20 years, is more important than ever. Whether you're a first-time home buyer trying to navigate affordability challenges or a seller looking to capitalize on record-high home prices, having the right guidance can make a huge difference. 

If you're looking for a knowledgeable and results-driven realtor in Wisconsin, call Amber Huemmer, owner and operator of The Huemmer Home Team with LPT Realty. One of Madison, WI Top Real Estate Teams every year. Reach out today to get a custom strategy for your real estate goals and stay ahead of the trends shaping Wisconsin’s housing market in 2025. Check out homes for sale in Madison, WI or homes coming soon in Dane County.

The Huemmer Home Team
LPT Realty
Amber Huemmer
608-279-5424
Amber@thhtrealty.com