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 median price appreciation in December was the strongest of the year.
“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.”
Tom Larson, President & CEO, Wisconsin REALTORS® Association
- 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.
About the REALTORS
The Wisconsin REALTORS® Association is one of the largest trade associations in the state, representing over 17,500 real estate brokers, salespeople and affiliates statewide. All county figures on sales volume and median prices are compiled by the Wisconsin REALTORS® Association and are not seasonally adjusted. Median prices are only computed if the county recorded at least 10 home sales in the quarter. All data collected by the WRA is subject to revision if more complete data becomes available. Beginning in June 2018, all historical sales volume and median price data from 2015 forward at the county level have been re-benchmarked using the Relitix system that accesses MLS data directly and in real-time. Data prior to January 2015 is derived from the Techmark system that also accessed MLS data directly. The Wisconsin Housing Affordability Index is updated monthly with the most recent data on median housing prices, mortgage rates and estimated median family income data for Wisconsin. Data on state foreclosure activity is compiled by Dr. Russ Kashian at the University of Wisconsin-Whitewater.
Note that the WRA employs a slightly different protocol to determine inventory levels than the protocol used by the REALTORS® Association of South Central Wisconsin (RASCW). For consistency, the summary tables for the South Central region reported in the WRA release employ the WRA approach. However, a modified table employing the RASCW methodology is available from the WRA upon request.
