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The Metropolitan Milwaukee housing market fell almost 4% in February, with 38 fewer sales than a year earlier.
February is usually a slow month, but only eking out 937 sales is less than would be expected considering the demand that exists.
As we move into the spring market it is encouraging that listings rose in February, although slightly, by 0.4%. That’s the third month in a row that listings have increased.
In fact, listings have increased in sixteen of the last nineteen months, but that was after one of the worst period of anemic listings (2022-2023) the market has seen this century.
When interest rates went up in mid-2022, sellers pulled back from listing their home for fear of paying higher interest rates on a new house. The result was fewer homes for buyers to choose from and a lot of frustration.
With listings lagging to the point that the market needs 5,265 more houses to meet current demand, the only place to look for those homes is new construction.
Unfortunately, the new homes side of the ledger has been unable to meet demand for years.
Through the end of 2024 there were 2,151 permits for new construction in the four county area. Well below the 5,265 new homes and condos the market needs today. In January there were only 144 new home permits taken out in the four county area – flat from January 2024.
Apart from the lack of adequate new construction and listings, demand for homes continues to remain strong.
To read the full report and graphics, click here.
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