MADISON (WKOW) -- Weak inventories drove home sales in Wisconsin down in March while driving prices up, according to a new report.
Wisconsin REALTORS Association (WRA) states that March inventories were "historically low," with just over 13,000 homes available for sale. Compared to March 2022, listings in March were down 20%.
Home sales also fell by 23.6% while the median price rose 6.9% to $272,000.
WRA President and CEO Michael Theo said 24,000 homes would need to enter the market -- a 178% increase -- to get back to a balanced market.
"The current housing shortage is depriving young individuals of the wealth-generating benefits of homeownership,” he said.
Joe Horning, 2023 WRA Chairman of the Board of Directors, also pointed out how millennial buyers are at a disadvantage.
“Millennials are typically first-time buyers. They have smaller down payments compared to repeat buyers who can use the proceeds of their previous home sale to increase their down payment," Horning said. "This results in heavier reliance on mortgage financing by millennials, so the higher mortgage rates more quickly price them out of the market than other buyers.”
WRA Consultant Dave Clark also noted that inflation is improving, the Fed still has work to do as the current rate is 5%, more than twice the Fed's target rate of 2%.
There is also a YouTube video that breaks down the report.