Wisconsin Home Sales Slow Down In April Thanks To Low Housing Inventory

Wisconsin home sales fell last month compared to April of 2016.

The latest analysis from the Wisconsin Realtors Association found the number of completed sales in April was down 10.7 percent compared to the same period last year.

Economist David Clark of Marquette University, who consults for the WRA, said sales are likely down because the number of houses on the market continues to fall.

“Inventories have been slipping, and they’ve really been slipping for about two years now,” Clark said. “That’s hurting our sales, and in addition, it’s putting upward pressure on our prices.”

Housing inventory has fallen 28 percent in the last two years, from about 50,000 homes on the market in April 2015 to just over 36,000 last month.

Median home prices rose to $171,000 in April, a year-to-year increase of 6.9 percent.

Clark said it was possible more owners will put houses on the market over the spring and summer, with homeowners looking to sell their current properties and buy new ones before interest rates rise any further.

But he said there haven’t been any indications of that so far, even though the market remains strong for sellers.

“One would expect when prices are going up 7, 8, 9 percent, that’s going to get some people off the fence,” Clark said. “But, quite frankly, if you want to sell your home in the summer, you probably have to have it listed in the spring. For whatever reason, we’re not seeing those (listings) materialize, at least at this point in time.”

Clark added the April figures don’t necessarily mean a slowdown for the housing market in 2017. The realtors association said the state saw record levels of home sales in March.

But he said the market is seeing the effects of long-term trends.

“It won’t surprise me to see continued upward movement in prices, continued modest growth at best in sales, and there may be some months where we don’t sell as many homes as we sold last year, mainly because the homes are not on the market to sell,” he said.