As the summer draws to a close, multiple opposing factors and trends are competing to define the direction of the real estate market. After the Federal Reserve lowered its benchmark interest rate on July 31, 30-year mortgage rates continued to decline, approaching all-time lows last seen in 2016. Yet most experts agree these reductions are unlikely to bring sufficient relief, at least in the short term, for first-time home buyers. The lack of affordable inventory and the persistence of historically high housing prices continue to affect the housing market,leading to lower-than-expected existing home sales at the national level.
New Listings in the Milwaukee region decreased 3.8 percent to 2,296. Pending Sales were down 61.8 percent to 655. Inventory levels rose 15.6 percent to 4,853 units.
Prices continued to gain traction. The Median Sales Price increased 11.1 percent to $250,000. Days on Market was down 15.2 percent to 28 days. Buyers felt empowered as Months Supply of Inventory was up 26.9 percent to 3.3 months.
The views and opinions expressed in this article are those of the authors and should reflect only on trends that affect the economics of real estate.