Normal spring increases in sales activity and relaxing COVID-19 policies created a bustling March real estate market. Buyer demand was mainly unabated in the face of rising home prices and mortgage rates. A busy and competitive buyer market is likely ahead with existing home sellers and new construction activity below necessary levels to bring the market back into balance.
New Listings in the Milwaukee region decreased 7.9% to 1,875. Closed Sales went down 3.7% to 1,392. Inventory levels fell 5.9% to 2,599 units.
Prices continued to gain traction. The Median Sales Price increased 6.9% to $260,000. Days on Market was down 23.8% to 32 days. Sellers were encouraged as the Months Supply of Inventory was down 5.9% to 1.6 months.
While many home builders are trying to increase their activity, the cost of lumber and other materials continues to limit new home construction and costs substantially. New construction methods, including 3D printed homes, could speed up construction and reduce costs in the future. We realistically are several years away from making a measurable impact in the market, however.
All data for the market reports comes from the Multiple Listing Service, Inc. and is powered by ShowingTime. This article’s views and opinions are those of the authors and should reflect only on trends that affect real estate economics.