Just like last year at this time, prospective home buyers should expect a
competitive housing market for the next several months. With payrolls trending upward and unemployment trending downward month after month in an extensive string of positive economic news, demand remains quite strong. Given the fact that gradually rising mortgage rates often infuse urgency to get into a new home before it costs more later, buyers need to remain watchful of new listings and make their offers quickly.
New Listings in the Milwaukee region decreased 5.1 percent to 2,678. Pending Sales were down 60.4 percent to 893. Inventory levels rose 4.2 percent to 4,960 units.
Prices continued to gain traction. The Median Sales Price increased 7.6 percent to $215,000. Days on Market was down 20.8 percent to 38 days. Buyers felt empowered as Months Supply of Inventory was up 17.2 percent to 3.4 months.
Although home sales may actually drop in year-over-year comparisons over the next few months, that has more to do with low inventory than a lack of buyer interest. As lower days on market and higher prices persist year after year, one might rationally expect a change in the outlook for residential real estate, yet the current situation has proven to be remarkably sustainable likely due to stronger fundamentals in home loan approvals than were in place a decade ago.