Lawrence Yun, chief economist for the National Association of REALTORS® (NAR) says that home sales are “stuck” this spring due to the limited number of homes available to buy. Though the spring market usually brings a larger supply of homes to market, this year does not reflect that common pattern. The current supply of homes for sale is 17% below 2012 levels, according to NAR data, and March 2013 inventory levels fell 21% year-over-year in all 38 major metropolitan areas.
Year-over-year, metro Milwaukee’s housing inventory level has decreased by 13.9%, with Wisconsin’s levels down to just nine month’s supply. Inventory levels are down from a 12.1 months supply a year ago and 18 months from July 2011.
With increased demand for the few houses on the market, many home sellers are pricing their homes higher and seeing multiple offers. According to the Wisconsin REALTORS® Association (WRA), median prices rose 9.7% in March, up 5% in the first quarter of 2013 compared with 2012. WRA President and CEO Michael Theo states, “very low mortgage rates have certainly stimulated sales activity, and this combined with a decline in new listings has brought our unsold inventory levels down.” Every region of the state saw its median price sales increase, where the south central region was up 10.1% and the southeast up 4.8%. In a recent study, 30 out of 38 cities witnessed an average annual 11.5% increase in list price per square foot.
If you’re looking to sell, don’t wait! With days on market dwindling, prices rising and mortgage rates staying low, there is sure to be a buyer out there looking to buy your home.