3-21-25 february home sales and median prices increase

Madison, Wis. – The Wisconsin REALTORS® Association (WRA) released its February 2025 Wisconsin Real Estate Report today, highlighting a promising improvement in sales during the off-peak season while continuing to see the market struggle to keep up with an excess of demand. In February, compared to the same month in 2024, Wisconsin home sales increased 7.0% – more than three times the rate of growth in January.

Additionally, the median price increased to $304,900, which is a 10.9% increase over the 12 months. Overall, the sales and median prices in February reinforced that competition for buyers is high, and the market favors sellers.

READ THE FULL REPORT HERE

Chris DeVincentis, 2025 Chair of the Board of Directors, Wisconsin REALTORS®
Association, pointed out that off-season sales were high despite costs: “We saw solid
improvement in sales for December through February, which is the off-peak season for home sales in Wisconsin. In fact, sales are up about 7% compared to last winter, which is remarkable given the affordability challenges in the market.”

Tom Larson, President & CEO, Wisconsin REALTORS® Association, hopes for lower mortgage rates to ease affordability concerns: “There continues to be significant unmet millennial demand for housing, and unfortunately these buyers face significant headwinds with rising prices and high mortgage rates taking a toll on affordability. Given the weakness in inventories, we can expect strong price pressure for the foreseeable future. Hopefully mortgage rates moderate this spring to improve affordability.”

David Clark, Professor Emeritus of Economics & WRA Consultant, cautions tariffs can fuel inflation in the market: “The Fed kept short-term interest rates high the last couple of years to keep the economy from overheating and further fueling inflation, and it made enough progress to justify rate cuts in the second half of 2024. However, another source of inflationary pressure is tariffs, which are taxes on imports. While the threat of tariffs can lead to concessions with trading partners if they generate a trade war, that will fuel inflation. Unfortunately, higher inflationary expectations keep mortgage rates elevated. Hopefully, successful negotiations with our key trading partners will avoid more inflationary pressures.”

REPORT HIGHLIGHTS:

• Existing home sales in February 2025 rose 7% compared to their February 2024 levels, which was more than three times the rate of growth in January; the median price increased 10.9% to $304,000 over that same period.
• Year-to-date sales rose 4.4% compared to the first two months of 2024, and the median price rose 11.1% to $300,000 over that same period.
• Inventory slightly weakened showing a continued strain on Wisconsin’s available
  housing supply.
• High mortgage rates persisted. The average 30-year fixed mortgage rate was 6.84%, only a slight rise from the February 2024 average rate of 6.78%.
• Total listings were flat over the past 12 months, but new listings of homes dropped 12.2% over the same period.
• While there has been a continuous improvement over the past two years, month of available supply weakened down slightly by 0.1% since February 2024, to 2.8% in February 2025. The shortfall in inventory continues to make it a strong seller’s market. In February, there were just over 16,000 total listings, meaning listings would need to increase by 113% to signal a balanced market.
• The Wisconsin Housing Affordability Index shows the rate of the median-priced home that a potential buyer with median household income can qualify to purchase, assuming a 20% down payment with the remaining 80% balance financed with a 30 year fixed-rate mortgage at current levels. The index fell from 139 in February 2024 to 125 in February 2025, which is a 10.1% reduction over the past year.
• Reduced affordability has resulted in more days on the market for homes that closed in February. Average days on the market saw a minor influx from 83 days a year ago to 84 days in January 2025, which is an increase of 1.2% over that period.