Wisconsin Home Sales Up – But Supply Might Cost 2021 A Record-Setting Year

Like many things, it's good news and bad news - all at the same time. It's been a good year for real estate in Wisconsin; in fact, they're up over the same period last year.  Many predict that state realtors will see one of their strongest years on record.  But the lack of supply might prevent 2021 from finishing off as a banner year.

So far, 2021 has been pacing ahead of the game.  According to an article in the Superior Telegram [paywall], "[s]ales for the first 10 months of 2021 are just ahead of last years record sales".

But even as sales and demand rises, supply is slipping. "In October, the number of total listings was down 7.2% from those of the year before. And houses that do go up for sale are...selling quickly, which puts more pressure on prices".  Wisconsin's median home price rose 7.5% in October to $245,000.  That rise in home sale prices translates into a financially-lucrative situation.

That dichotomy in home sales is further hampered by the affects that the pandemic has had on the housing market and the economy in general.  2020 is looked to as a good year for home sales in the state; but a filter is needed to fully understand the dynamic that occurred.  David Clark - an economist with Marquette University offers that "comparing the two years is difficult because of the economic effects of the coronavirus pandemic":  "The second half of the year was an unusually strong half of the year.  We really got a significant rebound from the depressed sales that took place in the first half of 2020".

All these factors have led housing forecasters to still hold to a positive outlook for Wisconsin for 2021.  Clark suggests that "I fully expect that when we get to the end of the year, this is likely to be our second-strongest year on record".

2021 may not be record setting.  But - it can still be good.