The median home price in Wisconsin has more than doubled over the last decade, as supply has failed to keep up with demand after homebuilding slowed during the Great Recession. That’s according to new data from the Wisconsin Realtors Association, or WRA, and a new report from the University of Wisconsin-Extension.
Steven Deller, professor of agricultural and applied economics at UW-Madison, authored the report. He said many were hoping to see downward pressure on prices in response to the Federal Reserve raising interest rates, but that hasn’t happened yet. Deller said high mortgage rates have had a modest effect on demand for homes, but a greater influence on those who currently own a home to postpone older couples from downsizing or young families upsizing, keeping some homes off the market.
“The normal churn in the housing market, the new supply of housing or the increase of existing homes going on the market is actually dropping a little bit more than the decline in demand,” he said.