After experiencing the initial effects of the coronavirus (COVID-19) outbreak, the housing market is on the road to recovery. Following the trends of various other areas, the Wisconsin real estate sector posted its own improvement in home sales.
However, this particular development came with a distinction of breaking all previous records.
Wisconsin Home Sales Hit Record High
The Wisconsin Realtors Association (WRA) started to collect home sales data in 2005. Since then, the local market has made a few records of its own. The WRA experienced its highest activity back in 2019 with 8,969 home sales. With sales of 9,649 homes in July 2020, the Winsconsin housing market has now marked its best month ever.
This marks a 7.6 percent increase for the most recent performance report by the market. But the significance of these improvements don’t stop there. The fact that this increase came in the middle of a pandemic is also noteworthy. However, there’s more to it than this simple observation.
The Record Was Achieved Despite Tight Inventory
Even before the start of COVID-19, the Wisconsin real estate market worked with a tight inventory. According to WRA officials, the area has been a seller’s market for at least three years.
But the novel coronavirus outbreak only expanded this status further. With sellers and buyers facing issues in conducting usual activities, the market also faced a drop in sales. However, even at being unmistakable, this setback did not affect Wisconsin as much as other states. During the first 7 months of 2019, home sales only dropped by 1.9 percent as compared to the previous year.
Mortgage Rates Contribute to the Market’s Performance
The COVID-19 outbreak has had a massive effect on mortgage rates. The 30-year fixed-rate mortgage has hit various record lows in the past few months. In July 2020, it touched 3.02 percent for the first time ever. In comparison, it was 3.77 percent the same time last year.
While these mortgage rates are a sign of worry for lenders, they are an exceptional incentive for Wisconsin home buyers. With the current phase of recovery, the median price of $226,400 for existing homes marks a steady pace for the market.
The ability to cut down mortgage rates in an otherwise competitive market encourages home buyers to chase quick closings. At the same time, it also pushes those sellers to list their homes who want quick offers on their properties.
The Housing Market is Expecting to Maintain Its Performance
Due to these combined factors, realtors and professionals in the Winsconsin housing market are confident of consistent performance. At the same time, they are being realistic about the associated aspects, and aren’t predicting record-breaking figures every month.
With that being said, they are showing complete faith in the market’s ability to attract buyers. As the fall season approaches, the low mortgage and tight inventory might play their part in highlighting available listings. The current consistency of prices may also contribute to this pace and drive the required attention to the market. With these aspects, it’s safe to project that Wisconsin realtors may have a few busy months ahead.
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