MADISON, Wis. (AP) - A new report shows home sales in Wisconsin hit a record high between December and February, which are typically off-months.
The Wisconsin Association of Realtors recorded more than 13,400 homes sold during typically slower months for sales, Wisconsin Public Radio reported . February saw a nearly 6 percent increase in home sales compared to the same time last year.
A healthy economy and low unemployment boosted demand, despite tight housing inventories across the state, the report said.
The median home price was $166,000 in February, a more than 7 percent increase compared to last year.
“So we have strong demand conditions and we’ve got housing that while it has been going up in a relatively rapid rate in terms of prices, is still relatively affordable,” said David Clark, an economics professor at Marquette University.
Winter months tend to see slow housing sales because of unpredictable weather, Clark said. Slowly increasing mortgage rates may be sparking sales in the off-months, he said.
“On occasion what that tends to do is get some people who are trying to time what’s the best time to buy a house from the standpoint of getting favorable loan conditions - they can actually get them off the fence and have them ultimately decide it’s time to make the jump,” Clark said.
Housing prices may continue to increase in the short-term and the limited home supply will likely remain the housing market’s primary constraint, Clark said. In the long-term, inventories will rise when baby boomers decide to sell their homes, he said.
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Information from: Wisconsin Public Radio, http://www.wpr.org
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