Summer housing market winds down, so does affordability
MADISON, Wis. (WMTV) - The summer housing market is winding down and so is housing affordability.
August wrapped up the prime season for sales. According to the Wisconsin Realtors Association, between May and August, 43% of homes are sold in a typical year. However, this year, home sales were down during this peak period.
The WRA August Housing Report shows inventories remained tight throughout the month. The report says this is due to the outpace of homes sold at 8,289 versus the new listings at 8,084.
With low supply and high demand, the median price in the state rose 10.4% in the first eight months of the year to $265,000.
Mortgage rates eased slightly over the last two months to 5.22%, they are still well above the 2.86% from a year ago.
Lower affordability has driven many potential buyers out of the market entirely. The report says “that will likely slow the pace of price appreciation. However, until we move toward a more balanced market, home prices will continue to increase at or near the double-digit pace we’ve seen year to date.”
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