Existing home sales in Wisconsin fell 8.3% in August compared to statewide closings in August 2025, reversing the upward trend seen in June and July. According to the latest report from the Wisconsin REALTORS® Association (WRA), the drop was driven in part by record-low affordability in the state, while tight inventories continued to put strong upward pressure on home prices. The statewide median price rose 7.1% over the past 12 months to $362,000.
Despite the August contraction, year-to-date sales growth remained positive, growing 3.2% compared to the first eight months of 2025, with the median price rising 7.3% to $348,838 over that same period.
Amy Curler, 2026 Chair of the Board of Directors for the Wisconsin REALTORS® Association, noted that peak season performance remains historically strong:
“Even though sales fell in August, closings for the peak season for housing remain the strongest since 2022. This is true for the May-through-August period as well as the traditional summer period of June through August.”
Regional Sales Breakdown August home sales fell across every region of the state, with the sharpest declines occurring in more rural areas:
- Central, North, and West regions: Saw double-digit drops in the 11.9% to 14.5% range.
- Southeast region: Slid 9.2% compared to August 2025 sales.
- Northeast region: Fell 6.2%.
- South Central region: Was down just 0.9% over the same period.
Inventory and Long-Term Trends Both new listings and total listings grew at a modest pace over the last year. Months of inventory increased slightly to 4.4 months of supply, signaling a continued seller’s advantage as total supply sits well below the six-month benchmark that indicates a balanced market.
Dave Clark, Professor Emeritus of Economics and WRA Consultant, pointed to demographic shifts affecting future housing availability:
“Although months of inventory still show a seller’s market, the monthly measure has steadily improved on a year-over-year basis since the end of 2022. The oldest Baby Boomers are now 80 years old, and the youngest are 62. As Boomers age, their demand for single-family detached housing will decrease, and this will continue to eventually accelerate the inventory improvement trend seen over the last four years.”
Mortgage Rates and Affordability Pressures Rising financing costs continue to impact prospective buyers. The average monthly 30-year fixed mortgage rate rose to 6.67% in August, slightly higher than 6.59% a year earlier, and up 62 basis points from February 2026 when the rate stood at 6.05%.
Statewide affordability fell 6.5% in August, marking six consecutive months of decline. The combination of rising mortgage rates, rapid price appreciation, and minimal income growth has pushed affordability to its lowest level since the WRA began tracking the metric in 2009.
Tom Larson, President & CEO of the Wisconsin REALTORS® Association, highlighted the pressure on buyers:
“Home prices are up by more than twice the rate of inflation over the last year, and this combined with the steady increase in mortgage rates since February is eroding affordability. This hits first-time buyers especially hard since they rely heavily on financing to buy their first home. Hopefully we start seeing rates fall as we move into the off-peak season for home sales.”
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