Madison, Wis. — The Wisconsin REALTORS® Association released its May 2026 Real Estate Report today, showing that the state’s housing market saw rising prices but a modest decline in sales as tight inventories and higher mortgage rates continued to shape buyer activity.
Existing home sales fell 2.8 percent year over year in May, while the statewide median home price rose 6.8 percent to $352,500. Year-to-date sales increased by 2.6 percent compared to the first five months of 2025, while the median price increased by 6 percent to $334,000. Inventory remains tight, with just 4.1 months of supply statewide, unchanged from May 2025 and still below the six-month benchmark for a balanced market. New listings increased 0.8 percent, and total listings rose 2.5 percent year over year as buyer activity continued to absorb available supply.
The average 30-year fixed mortgage rate was 6.44 percent, down 38 basis points from 6.82 percent in May 2025. Despite the year-over-year improvement, the upward drift in rates since February has continued to pressure affordability.
Wisconsin housing affordability fell 2.4 percent over the past year, with the Housing Affordability Index at 124, reflecting the combined impact of rising prices, higher mortgage rates, and weak income growth.
Amy Curler, 2026 Chair of the Board of Directors, Wisconsin REALTORS® Association, highlighted that “While May sales fell short of last year, our year-to-date home sales remained ahead of the first five months of 2025. This is impressive given the tight inventories and persistently high mortgage rates, and we hope to see moderating mortgage rates and inventory improvements that lead to healthy sales performance this summer.”
Tom Larson, President & CEO, Wisconsin REALTORS® Association, stated, “Millennials represent our largest population cohort, and the current inventory weakness has a big impact on that demographic group. Although the homes listed at the top of the price distribution show plenty of inventory, very few first-time buyers are buying homes at or above $500,000. It’s the homes listed under $350,000 that are primary targets for new buyers, and these homes are unfortunately in very short supply.”
Dave Clark, Professor Emeritus of Economics and Wisconsin REALTORS® Association Consultant, noted, “Headline inflation saw another increase in May, rising from just 2.4% in January of this year to 4.2% in May. This is the first time headline inflation has exceeded 4% since May 2023. The Fed closely monitors inflation, but it focuses on core inflation, which removes the more volatile food and energy sectors. Core inflation measured using the Consumer Price Index shows inflation up by less than a half percent this year, rising from 2.5% in January to 2.9% in May. While the Fed is unlikely to lower short-term interest rates in the foreseeable future, hopefully it will not need to raise rates to reduce inflationary pressures.”
REPORT HIGHLIGHTS:
- Existing home sales fell 2.8 percent year over year in May, while the median home price increased 6.8 percent to $352,500.
- Year-to-date sales increased 2.6 percent compared to May 2025, with prices up 6 percent to $334,000.
- Inventory remains constrained at 4.1 months statewide, unchanged from last year.
- New listings increased 0.8 percent, and total listings increased 2.5 percent year over year.
- The average 30-year fixed mortgage rate was 6.44 percent, down from 6.82 percent one year earlier.
