Jul. 19—EAU CLAIRE — Home sales in western Wisconsin and the rest of the state continue to fall behind last year's numbers at the halfway point of 2022.
Home prices continue to climb as demand outpaces inventory, but Wisconsin real estate experts expect rising mortgage rates will soon cut into the advantage that sellers have had in the market.
"Realtors report the reduction in affordability has already begun to price some buyers out of the market," Michael Theo, president and CEO of the Wisconsin Realtors Association, said in a news release. "With mortgage rates on an upward trajectory, we expect the seller's market to weaken by the end of the year."
While that's the long-term forecast, another leader of the statewide association said sales should remain fast and hot for the rest of summer.
"Even in an environment of rapidly rising mortgage rates, demand remains strong, and homes are moving quickly," Brad Lois, association chairman stated in the same release. "This trend is likely to continue, at least through the peak market in the summer."
That seller's advantage is due in large part to historically low inventory, he said.
Last month the number of active listings in Wisconsin was 14.4% lower than it was in June 2021, according to statistics released Monday by the Wisconsin Realtors Association.
The 8,526 homes sold during June was an 11.1% drop from the 9,594 homes sold a year ago. But the median home price was 9.4% higher with the typical home selling for $280,000 last month, compared to $256,000 in June 2021.
Western Wisconsin has, for the most part, been in line with state trends.
Eau Claire and Chippewa counties both saw fewer home sales and rising median prices in June.
The 140 homes sold last month in Eau Claire County was 20 fewer than a year ago. But the median home sold there went for $288,750, which was $35,750 more than June 2021.
There were 88 homes sold in Chippewa County last month, just six less than a year before. The median price grew even higher there, reaching $291,217 — growing $41,377 over the same measure from June 2021.
Home sales last month in Dunn County ran contrary to what much of Wisconsin experienced.
Sales in that county were up slightly with 54 homes sold — three more than a year ago. June's median home price had fallen to $229,000 compared to $260,000 during the same month during 2021 in Dunn County.
The report issued Monday on June's sales also includes a look at how the first half of this year compares to the same months in 2021.