Madison, Wis. – The Wisconsin REALTORS® Association (WRA) released its May 2025
Wisconsin Real Estate Report today, revealing home sales fell for a third straight month.Affordability improved 5.1% over the past 12 months, while the average 30-year fixed mortgage rate fell 24 basis points to 6.82% over the same period. Year to date, home sales fell 2.7% compared to the first five months of 2024, and the median price rose 6.8% to $315,000 over that same period, but remains low by historical standards.
READ THE FULL REPORT HERE
Chris DeVincentis, 2025 Chair of the Board of Directors, Wisconsin REALTORS® Association, highlighted inventory improvements saying: “As we move into the peak period for sales, it’s good to see a solid improvement in inventory levels over the last 12 months. More housing inventory will help moderate price appreciation and will lead to more buying opportunities.”
Tom Larson, President & CEO, Wisconsin REALTORS® Association, pointed toward key
affordability trends: “Median family income increased 7% since May of last year. This increase, combined with a slight improvement in the 30-year mortgage rate and moderately lower price appreciation over the last year, led to a slight improvement in affordability. Hopefully these trends continue and will help first-time buyers achieve the goal of homeownership.”
David Clark, Professor Emeritus of Economics and WRA Consultant, noted that inflation remains stable: “The Fed’s preferred measure of inflation is core inflation, which removes the volatile influence of the food and energy sectors. The Consumer Price Index core inflation measure remained stable in March, April, and May at 2.8%, which is a four-year low for this measure. While core inflation remains above The Fed’s target rate of 2%, it does suggest inflation has stabilized. Avoiding inflationary spikes is key if The Fed is to lower short-term interest rates later this year.”
REPORT HIGHLIGHTS:
- Existing home sales fell for a third straight month, but the pace of decline moderated in May. Specifically, closed sales fell just 2.1% over the past 12 months, which is well
below the annual slide in home sales seen in recent months: March sales declined 8.6%, and April sales declined 9% year over year. Relative to May 2024, the median price rose 4.3% to $330,000. - Year to date, home sales fell 2.7% compared to the first five months of 2024, and the
median price rose 6.8% to $315,000 over that same period. - The average 30-year fixed mortgage rate fell 24 basis points to 6.82% over the last 12
months. - The statewide inventory picture has improved. While new listings fell 1.5% in May
compared to that same month last year, total listings rose 8.5% to just over 22,000
homes on the market, and months of available supply increased 8.3% to 3.9 months of supply. - All urban classifications saw improvement in months of supply. Metropolitan counties
with large cities as well as micropolitan counties with smaller cities and towns remained strong seller’s markets, with just 3.5 and 4.1 months of supply, respectively. However, rural counties improved to 5.7 months of supply in May 2025, which is close to the six-month benchmark, indicating a balanced market. - Affordability improved 5.1% over the past 12 months but remains low by historical
standards. The Wisconsin Housing Affordability Index measures the percent of the
median-priced home that a buyer with median family income qualifies to purchase,
assuming 20% down and the remaining balance financed with a 30- year fixed mortgage at current rates. The index value was 124 in May 2025. The WRA has tracked affordability since 2009, and the lowest value for the index was 116, recorded in June 2024.
