Madison, Wis. - The Wisconsin REALTORS® Association (WRA) released its December 2024 Wisconsin Real Estate Report today, noting a substantial increase in sales and very strong price appreciation for the existing home market. Additionally, affordability remains a challenge; levels declined 10% over the last 12 months due to factors such as mortgage rates, price appreciation, and median income levels. Year-end data shows 2024 sales were up 4.7% from their 2023 levels, and the median price rose 8.8% to $310,000.
Chris DeVincentis, 2025 Chair of the Board of Directors, Wisconsin REALTORS® Association, gave winter homebuying advice: “We saw the strongest December sales since 2021 even as affordability fell over that period. This good sign indicates that buyers who work with a REALTOR® during winter may find opportunities that would be unavailable during the peak season. Sellers in the winter are often highly motivated to sell and likely open to price concessions compared to peak months.”
Tom Larson, President & CEO, Wisconsin REALTORS® Association, compared Wisconsin’s affordability to other areas: “There is no doubt that Wisconsin’s housing affordability has been declining since mortgage rates bottomed out in 2020. However, the Midwest fortunately has higher affordability than all other regions of the country. This is primarily due to the Midwest’s lower housing prices, which averaged just under $305,000 in November. By comparison, National Association of REALTORS®' data showed November prices 21% higher in the South, 60% higher in the Northeast, and 110% higher in the West.”
David Clark, Professor Emeritus of Economics and WRA Consultant, hopes for reduced federal deficits in the future: “Declining affordability closely ties to mortgage rates, which ended 2024 at levels similar to January 2024. Although the Fed lowered the short-term Federal Funds rate by 1% in the fall, mortgage rates more closely track the yield of 10-year treasury bonds. Think of the bond yield as the guaranteed annual interest rate paid when purchasing a bond. Those yields rose a full percentage point during Q4, corresponding with a half percent increase in the 30-year fixed mortgage rate in that time span. The treasury bond yields will likely stay high as long as there are large deficits that need to be financed with treasury bonds. Hopefully federal deficits are reduced in the next administration.”
REPORT HIGHLIGHTS:
- The existing home market heated up in December with a substantial spike in sales and very strong price appreciation. December home closings jumped 9.2% compared to their levels 12 months earlier, and the median price rose 13% to $305,000. December growth in sales was stronger than any month since May 2024, and the media price appreciation in December was the strongest of the year.
- A review of year-end data shows sales for all of 2024 were up 4.7% from their 2023 levels, and the median price rose 8.8% to $310,000.
- Total statewide listings of homes in December were 3.8% higher than December 2023. However, new listings in December 2024 fell 3.7% compared to their level 12 months earlier, even as sales increased 9.2% over that same period. In fact, December closings were 62% higher than new listings.
- Strong demand and weak supply created a strong seller’s market with just 2.7 months of available supply, which is unchanged from December 2023. This is well below the six-month benchmark that indicates a balanced housing market.
- The average 30-year fixed mortgage rate was 6.72% in December, which is only slightly lower than the 6.82% average rate of December 2023.
- Persistently high mortgage rates, robust appreciation of median home prices, and relatively flat levels of median family income led to a 10% decline in statewide housing affordability over the last 12 months. The Wisconsin Housing Affordability Index measures the percent of the median-priced home that a potential buyer with median family income qualifies to purchase, assuming 20% down with the remaining balance financed with a 30-year fixed mortgage at current rates. The index fell from 140 in December 2023 to 126 in December 2024.
FULL REPORT
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Last Update: Jan 23, 2025 12:01 pm CST
