MONROE — The shortage of single-family homes for sale in Wisconsin continued to put upward pressure on prices in November, but the number of homes sold were nearly identical with solid sales last November, according to the most recent market analysis by the Wisconsin REALTORS Association.
The monthly sales report showed November home sales up 0.5 percent from that same month last year, and median prices increased 7.7 percent to $183,000. On a year-to-date basis, home sales remain 1.7 percent below the first 11 months of last year, whereas the median price was 6.7 percent above the same 11-month period in 2017.
According to WRA data, Green County followed the trend of increased prices, but dropped slightly in sales numbers. The median price of homes in November rose to $158,000 from $153,000 in November 2017, a 3.3 percent increase. However, sales fell slightly from 34 in 2017 to 31 in November, an 8.8 percent decrease.
Over the last 12 months, homes priced below $500,000 experienced a seller’s market, particularly homes in the $125,000 to $199,999 range which were very scarce with just 3.1 months of supply. For homes priced above $500,000, there was ample supply with 9.8 months of inventory. In Green County, the inventory change decreased as well, from 3.6 in 2017 to 3.1 in November. The average days of homes on the market countywide dropped significantly too. In 2017, it was 107 days, but in November, it was down to 68, a 36 percent decrease.
WRA Board Chair Jean Stefaniak noted in a press release from the organization that there was good news; new listings were up 5.2 percent in November in a tight market.
In Lafayette County, sales plummeted in a year’s comparison. In November 2017, numbers were around 20, but this year they had dropped by 55 percent to just nine. However, inventory had dropped slightly as well, from 6.9 to 5.8, a decrease of just under 16 percent, and the average days on the market went down as well. In 2017, it was 157 days, but in November, it was down to 116. The change was a decrease of more than 26 percent in the average days a home spends on the market within Lafayette County. Median price information by WRA was unavailable.
WRA estimates the statewide growth in the median family income was 3.4 percent over the last 12 months, but the nearly 1 percent increase in the 30-year fixed rate mortgage combined with the 7.7 percent increase in the median sale price dropped affordability 13.3 percent.
The WRA Housing Affordability Index shows that portion of the median priced home that a borrower can afford to buy, assuming they have median family income, a 20 percent down-payment, and 30-year fixed mortgage on the remaining balance. The index fell from 225 in November 2017 to 195 this past month.
The national unemployment rate has remained steady at 3.7 percent the last three months, and the statewide rate has held 3 percent since August with 31,800 total private sector jobs created over the 12-months ending in October. Home prices tend to soften during the winter months as demand moderates.