Existing home sales fell 2.8% year over year in May, while the statewide median home price rose 6.8% to $352,500.

Year-to-date sales increased by 2.6% compared to the first five months of 2025, while the median price increased by 6% to $334,000.

Inventory remains tight, with just 4.1 months of supply statewide, unchanged from May 2025 and still below the six-month benchmark for a balanced market.

New listings increased 0.8% and total listings rose 2.5% year over year as buyer activity continued to absorb available supply.

The average 30-year fixed mortgage rate was 6.44%, down 38 basis points from 6.82% in May 2025. Despite the year-over-year improvement, the upward drift in rates since February has continued to pressure affordability.

Wisconsin housing affordability fell 2.4% over the past year, with the Housing Affordability Index at 124, reflecting the combined impact of rising prices, higher mortgage rates, and weak income growth.

Additional analysis

Pace of Sales Remains Solid

“While May sales fell short of last year, our year-to-date home sales remained ahead of the first five months of 2025. This is impressive given the tight inventories and persistently high mortgage rates, and we hope to see moderating mortgage rates and inventory improvements that lead to healthy sales performance this summer.”

Amy Curler, 2026 Chair of the Board of Directors, Wisconsin REALTORS^® Association

Inventory Challenges Affect First-time Buyers

“Millennials represent our largest population cohort, and the current inventory weakness has a big impact on that demographic group. Although the homes listed at the top of the price distribution show plenty of inventory, very few first-time buyers are buying homes at or above $500,000. It’s the homes listed under $350,000 that are primary targets for new buyers, and these homes are unfortunately in very short supply.”

Tom Larson, President & CEO, Wisconsin REALTORS^® Association

Core Inflation Shows Minor Increase thus Far

“Headline inflation saw another increase in May, rising from just 2.4% in January of this year to 4.2% in May. This is the first time headline inflation has exceeded 4% since May 2023. The Fed closely monitors inflation, but it focuses on core inflation, which removes the more volatile food and energy sectors. Core inflation measured using the Consumer Price Index shows inflation up by less than a half percent this year, rising from 2.5% in January to 2.9% in May. While the Fed is unlikely to lower short-term interest rates in the foreseeable future, hopefully it will not need to raise rates to reduce inflationary pressures.”

Dave Clark, Professor Emeritus of Economics and WRA Consultant