The Wisconsin REALTORS Association (WRA) has just unveiled its July 2023 WI Real Estate Report, and the findings are causing some concern within the housing market. The report paints a picture of weak inventories, escalating home prices, and declining sales, creating a challenging environment for both buyers and sellers.
Wisconsin Realtors Associations July 2023 Report
According to a published article, in July 2023, home closings took a significant hit, plummeting by 20.8% when compared to the same month in the previous year. This sharp decline in sales activity is worrisome, as it indicates a potential slowdown in the housing market.
Adding to the worries, the median price for homes surged by 7.5%, reaching the $300,000 mark for the second consecutive month. Mortgage rates have been on an upward trajectory, with the average 30-year rates hitting a staggering 6.84% in July.
Michael Theo, President & CEO of the Wisconsin Realtors Association, expressed hope for rate improvements in the coming months, recognizing the impact on homebuyers, especially first-time buyers who rely heavily on financing.
One factor contributing to the uncertainty in the housing market is the Federal Reserve’s actions.
Dave Clark, Professor Emeritus of Economics and a consultant for the Wisconsin Realtors Association, highlighted the recent uptick in headline inflation to an annual rate of 3.2% in July.
Key Insights of Wisconsin Realtors Associations Report
Joe Horning, 2023 Chairman of the Board of Directors for the Wisconsin Realtors Association, highlighted the challenges faced by younger households in cities. He pointed out that while rural counties are slowly moving toward a balanced market, urban areas are grappling with extremely low inventory levels, making it tough for younger families to secure homes.
Here are some key insights from the Wisconsin Realtors Association’s July 2023 report:
- Year-to-date data reflects the monthly trends, with sales of existing homes from January to July 2023 down by 23.6% compared to the same period in 2022. Over this time frame, the median price has climbed 8.4% to $285,000.
- New listings in July saw a significant decline of 17.7% from the previous year, contributing to a total listings drop of 20.7%.
- Regional data showed a drop in sales across all areas compared to July 2022, ranging from 16.7% to 25.2%. Rural regions experienced minimal changes in median prices, while urban areas like the Northeast region saw a significant 14.6% increase.
- In rural areas, there was a small improvement in the number of homes available for sale, with the supply increasing from 4.3 months to 4.8 months. However, in larger cities, the supply of homes for sale remained unchanged at 2.9 months.
- The Wisconsin Housing Affordability Index, which assesses how affordable median-priced homes are for families with median incomes, stayed at 125 for the second consecutive month. This is the lowest level it has reached since it was first introduced in 2009, indicating a significant 15.5% decrease in affordability over the past year.
In conclusion, the July 2023 Wisconsin Realtors Association report highlights the challenges currently facing the Wisconsin housing market.