Madison, Wis. - The Wisconsin REALTORS® Association (WRA) released its March 2025 Wisconsin Real Estate Report today, revealing a double-digit decrease in existing home sales of 10.2% compared to March 2024. Inventory supply remains well below what would be considered a balanced market, and the median price of homes rose to $300,500 in the first quarter of the year compared to the same period in 2024. However, affordability has improved after a re-benchmarking of statewide median family income data showed positive growth. As a result, the Wisconsin Housing Affordability Index increased by 7.2%.
Chris DeVincentis, 2025 Chair of the Board of Directors, Wisconsin REALTORS® Association, highlighted the movement toward affordability: “The moderating price appreciation, income growth and slight improvement in mortgage rates really helped on the affordability front. This is a good sign as we move into the peak season for sales. The ongoing challenge is the weak inventory levels that constrain home sales growth.”
Tom Larson, President & CEO, Wisconsin REALTORS® Association, commented on the return of buyers to the market: “When mortgage rates first tapped 5% almost three years ago some buyers stepped back from the market, hoping rates would improve. Now that 30-year rates have been in the 6% to 7% range for most of the last two years, there are signs that buyers are treating this as the new normal. That bodes well for solid buyer demand going into the peak sales period.”
David Clark, Professor Emeritus of Economics and WRA Consultant, reminds that tariffs may affect the market: “The Fed is closely monitoring inflation as it considers future rate cuts to stimulate the economy. While the March inflation figures suggest progress on inflation – with core CPI inflation dropping to 2.8%, which is its lowest level since March 2021 – those numbers were released before widespread tariffs were imposed in early April. The Fed recently acknowledged that tariffs can be inflationary, and it may need to delay cuts in short-term rates – which would be warranted if recession risks increase – to counter those inflationary pressures.”
REPORT HIGHLIGHTS:
Existing home sales fell by double digits in March as inventories remained tight. Wisconsin home sales fell 10.2% compared to solid sales in March 2024. The median price rose 3.7% over the past 12 months to $310,000, but this is only about a third of the pace of price growth seen in the first two months of the year.
During the first three months of 2025, sales were down slightly, falling 0.8% relative to that same period in 2024. The median price rose 7.3% to $300,500 in the first quarter of 2025 compared to the first quarter of 2024.
Inventory levels remain well below the balanced market benchmark of six months of available supply, with March inventory at 3.2 months, which is unchanged from March 2024. Total listings were relatively flat over the last 12 months, rising just 0.6% in March, whereas new listings fell 1.3% compared to March 2024.
An annual re-benchmarking of statewide median family income data by the U.S. Department of Housing and Urban Development revealed more income growth over the past 12 months than was earlier estimated. Wisconsin median family income rose 7.7% between March 2024 and March 2025. This, combined with moderating price appreciation and a slight improvement in mortgage rates – specifically, a 17 basis point drop in the 30-year fixed mortgage rate to 6.65% in March – helped improve statewide housing affordability.
The Wisconsin Housing Affordability Index measures the portion of the median-priced home that a typical buyer with median family income qualifies to purchase, assuming a 20% down payment, and the remaining balance financed using a 30-year fixed mortgage at current rates. The index rose 7.2% to 134 in March 2025.
FULL REPORT
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Last Update: Apr 24, 2025 11:27 am CDT
