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MARKET TRENDS

  • New listings fell significantly in January, leading to tighter inventory statewide. Existing home sales fell 3.9% compared to January 2025, and the median price rose 7.9% over that same period to $315,000.
  • The Wisconsin Housing Affordability Index was up 2.2%, reaching its highest level since January 2024.
  • Regionally, home sale prices have appreciated in five of the six regions of the state over the last 12 months. 
  • The average monthly 30-year fixed mortgage rate fell from 6.96% in January 2025 to 6.10% in January 2026.
  • New listings were down 11.3% compared to their levels in January 2025. Months of inventory fell 6.5% to just 2.9 months in January, which indicates the state continues to have a strong seller’s market.

 

The Role of Demographics in Housing Supply

“We currently have very limited supply in the housing market, but we do expect significant improvement in the next five years due to the aging of a key demographic group: baby boomers. The youngest boomers are now 62 years old, and the oldest just turned 80. Moreover, according to a 2025 survey conducted by the National Association of REALTORS®, boomers accounted for the largest share of both buyers (42%) and sellers (53%) of homes. As those in this demographic cohort continue to age, their propensity to buy homes will diminish, and their propensity to sell will increase, thereby releasing inventory for younger generations.”

Dave Clark, Professor Emeritus of Economics and WRA Consultant

 

Inventory Trends

“Total listings grew on an annual basis for 28 straight months before declining in January. We suspect this is just a temporary deviation from the trend, and we’re cautiously optimistic that the spring and summer markets will see growing inventories.”    

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

 

Upward Trends in Affordability

“The spike in mortgage rates that began in 2022 saw rates topping out over 7%, and as a result, affordability fell to record-low levels. We really didn’t start seeing improvement until the middle of last year. Since June 2025, the 30-year fixed mortgage rate has fallen by nearly three quarters of a percent to 6.1%, and the Wisconsin Housing Affordability Index has increased nearly 16%. Hopefully these improvements in affordability continue.”  

Tom Larson, President & CEO, Wisconsin REALTORS® Association

 
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