September 2024 Home Sales Report
September Home Sales Declined as Prices Increased at Robust Pace
Date: October 24, 2024
September 2024 at a glance
- The existing home market saw fewer sales in September 2024 relative to that same month last year, with 8.7% fewer sales over the most recent 12-month period. The median price rose 6% to $310,000 over that same period.
- Thanks to a strong start to the year, year-to-date home sales are up 3.8% compared to the first nine months of 2023. The median price for the first three quarters of 2024 was up 7.6% to $310,000 when compared to the first nine months of 2023.
- Although both total listings and new listings rose in September indicating a slight improvement in inventory levels, the housing market remained tight. With just 3.8 months of available supply, the existing home market continued to signal a strong seller’s advantage, with supply well below the six-month benchmark that indicates a balanced housing market.
- There were very few listings below $200,000 in September. Specifically, only 18.2% of total listings were below that price point. In contrast, 31.4% of listings were in the $200,000 to $349,999 range, and the remaining 50.4% of listings exceeded $350,000.
- The trend of declining mortgage rates has improved affordability in the state. The average 30-year fixed mortgage rate fell to 6.18%, which is 102 basis points lower than the rate in September 2023. Combined with a slight increase in predicted median family income at just over a half percent since September 2023, the rate decline helped offset the 6% increase in the median home price. Overall, housing affordability improved 5.7% over the past 12 months.
Additional analysis
Continued Improvement on Mortgage Rates
"Mortgage rates are more than a percent lower compared to this time last year, and this is the fourth straight month they’ve fallen since averaging a little over 7% last May. This has really helped improve affordability in the state."
Mary Jo Bowe, 2024 Chair of the Board of Directors, Wisconsin REALTORS® Association
Listings Remain an Ongoing Challenge for First-time Buyers
"We did see an improvement in overall listings in September, but this is still a very challenging market for first-time buyers who are traditionally looking for starter homes at lower price points. There’s a lot of unmet millennial demand, which unfortunately will keep pressure on prices and further shrink the inventory of starter homes."
Tom Larson, President & CEO, Wisconsin REALTORS® Association
Signals on the Economy Are Mixed
"The Fed’s actions in September to lower short-term interest rates by a half percent sent a clear signal that it was concerned that recession was a greater risk than inflation. While core inflation did uptick slightly in September, the Conference Board’s Leading Economic Indicator, which tends to trend downward as the economy weakens, fell again in September, which is the sixth consecutive monthly decline. The Fed meets two more times this year to decide whether additional cuts are warranted. If inflation pressures don’t further strengthen, we can expect additional interest rate cuts this year."
Dave Clark, Professor Emeritus of Economics and WRA Consultant