(The Center Square) – The latest snapshot of home sales in Wisconsin is bad news for anyone wanting to buy a home.
The Greater Milwaukee Association of Realtors is out with its report of July home sales, and sales are down.
“Home sales were down 19.4% in the Metropolitan Milwaukee area in July compared to the same time in 2022,” the report noted.
Real estate agents sold a total of 1,644 homes in Milwaukee, Waukesha, Ozaukee and Washington counties last month, compared to the 2,040 sold in the same five metro counties in July 2022. Sales in southeast Wisconsin as a whole, which includes Kenosha, Racine and Walworth counties, show the same nearly 20% drop compared to last year.
Agents say the problem is not demand.
“Sales are not down due to a lack of buyer interest. On the contrary, buyer demand is strong. The problem with the market is that there is simply not enough supply to satisfy buyer demand,” the report says. “With little to no new construction of single-family houses or condominiums, and an overabundance of apartment construction, current homeowners cannot move because there simply is nowhere to move to.”
The report said there were 1,931 homes listed for sale in the Milwaukee metro in July, compared to 2,366 a year ago.
Agents said two things need to happen.
“Empty-nesters and elderly homeowners who would like to downsize to a smaller property – opening up ‘move-up’ properties – are stuck because they cannot find one,” the report states. “Young families who need more space and would buy those ‘move-up’ properties are trapped in their small homes and apartments. And first-time buyers have to spend another year renting (and not building any equity) because young families that are stuck in their first house can’t escape.”
Add to that rising interest rates, and a spike in home prices, and the Realtors say many people are priced out of the market.
The average price for a home in the Milwaukee metro area hit $400,511 last month, up from $374,579 in July of 2022.
And the Realtors say things likely won’t get better anytime soon.
“The market is nowhere near becoming a balanced market in the near-term with new listings falling 18.4% from July 2022. That is because, as noted above, the metropolitan market is contending with a years’ long trend of not creating enough new or existing homes to satisfy buyers’ needs,” the Realtor’s report stated. “To reach a balanced market (commonly understood to be 6 months of inventory) the four county area needed 4,900 additional units in July. That month there was only enough inventory to satisfy 2.6 months of buyer demand, and if we subtract units with an offer on them that level drops to 1.1 months.”
