Northwoods Home Sales Keep Pace But Prices Rise
Despite low inventories, Wisconsin home sales last year were only slightly off the record sales pace in 2017 as median prices continued to outpace inflation, according to the most recent analysis of the state housing market done by the Wisconsin Realtors Association (WRA).
Economist Dr. David Clark works with the organization. He says if more homes had been available to sell, they would have passed the record. He says sales are strong due to a healthy economy with low unemployment, and strong job growth. He says mortgage rates rose a bit last fall, then dropped a bit in December.
But, he says, inflation isn't a big concern and that should help mortgage rates...
"...Keeping inflation under control is important. The fact that we seem to be in a situation where those inflationary expectations continue to be low bodes well for next year. It's less likely we're going to see the continual upward movement of mortgage rates..."
Strong demand but low supply of homes for sale pushed the 2018 median price up to $184,000, which is 7 percent above prices for 2017. The imbalance of supply and demand pushed the median price for December up 5 percent to $179,000 over the past 12 months.
In the 18 county northern region, prices rose 6 percent to a median of $155,000. Sales were close to the same number last year as 2017