Home sales in Wisconsin fell for the third consecutive month in May 2025, though the rate of decline slowed compared to recent months, according to a report from the Wisconsin Realtors Association released Wednesday. Despite persistent high prices, improvements in inventory and affordability offered some relief to the state’s housing market.
Existing home sales dropped 2.1% in May 2025 compared to May 2024, a smaller decline than the 8.6% slide in March and 9% drop in April. The median home price rose 4.3% to $330,000. For the first five months of 2025, home sales were down 2.7% compared to the same period in 2024, with the median price increasing 6.8% to $315,000.
The statewide inventory of homes improved, with total listings rising 8.5% to just over 22,000 homes, resulting in 3.9 months of supply, an 8.3% increase from a year ago. New listings, however, fell 1.5% in May compared to May 2024. All urban classifications saw gains in months of supply: metropolitan counties had 3.5 months, micropolitan counties had 4.1 months, and rural counties reached 5.7 months, nearing the six-month mark for a balanced market.
Affordability edged up 5.1% over the past 12 months, with the Wisconsin Housing Affordability Index reaching 124 in May 2025. The index, which measures the percentage of a median-priced home a median-income buyer can afford with a 20% down payment and a 30-year fixed mortgage, remains above its lowest point of 116, recorded in June 2024. The average 30-year fixed mortgage rate fell 24 basis points to 6.82% compared to May 2024.
“Median family income increased 7% since May of last year. This increase, combined with a slight improvement in the 30-year mortgage rate and moderately lower price appreciation over the last year, led to a slight improvement in affordability,” said Tom Larson, President & CEO, Wisconsin Realtors Association. “Hopefully these trends continue and will help first-time buyers achieve the goal of homeownership,”
While challenges remain, the slower sales decline and increased inventory suggest a potential stabilization in Wisconsin’s housing market.
