The pace at which home prices are changing serves as a critical indicator of the housing market’s health, offering insight into whether homes are becoming more or less affordable. As of June 2024, the median price of a home in Wisconsin stands at $332,200, reflecting an 8% increase since June 2023. The data sourced in this article was reported in Redfin, one of the nation’s largest real estate brokerages.
In Wisconsin, the housing market is showing signs of both stability and change. In June 2024, there were 20,880 homes for sale in the state, marking a slight increase of 1.7% compared to the previous year. However, the number of newly listed homes decreased by 11.1% year over year, with only 7,048 new listings. The average supply of homes remains steady at two months, indicating that demand continues to outpace supply, even as the market sees a minor uptick in available homes.
The supply of homes is a key factor in determining how quickly properties are sold. The steady supply suggests that while buyers have options, homes are still being sold relatively quickly, and the market is maintaining a level of competitiveness.
The competitive nature of the Wisconsin housing market is evident in the percentage of homes selling above their list price. In June 2024, 50.7% of homes in Wisconsin sold for more than the asking price, though this is a decrease of 4.6 percentage points from the previous year. Additionally, 19.1% of homes saw price reductions, up from 14.0% in June 2023. The sale-to-list price ratio also saw a slight dip, standing at 101.4%, down 0.93 points year over year.
These trends suggest that while the market remains competitive, with many homes receiving multiple offers, there are signs of softening, as fewer homes are selling above the list price compared to the previous year. Homes that sell for more than the list price often receive multiple offers. A high or increasing percentage of homes selling above the asking price signals a competitive housing market, where bidding wars are more frequent. Conversely, a low or decreasing percentage of homes selling above the list price indicates a less competitive market.
Several cities in Wisconsin continue to experience intense competition among buyers. The top 10 most competitive cities in the state include La Crosse, Onalaska, Sparta, New Berlin, West Allis, Wauwatosa, Allouez, Cudahy, Hales Corners, and Oak Creek. These areas are seeing high demand, with homes selling quickly and often above asking price.
While the Wisconsin housing market remains competitive, there are indicators of a slight cooling, with fewer homes selling above list price and more price reductions being observed. However, the overall supply of homes remains tight, maintaining a degree of pressure on buyers.