FROM THE DESK OF RON RESTAINO
June 1st, 2018
Wisconsin Ranks in the Top One-Third for Affordability
The Wisconsin Housing Affordability Index fell to 195, in April – the first time it’s been below 200 since June 2010, according to the Wisconsin REALTORS Association’s April home sales report.
The index measures whether the average family could qualify for a loan on a typical home. A value of 100 means that a family earning the median income has exactly enough income to qualify for a mortgage on a median-priced home.
Although short supply and heavy demand have pushed affordability lower than it’s been in years, affordability in Wisconsin is still significantly above the national average, which was 150 for the first quarter of the year, the NATIONAL ASSOCIATION OF REALTORS reported. A curved affordability score from NAR ranked Wisconsin in the top one-third of all states for affordability.
Yet, demand and the strong economy has propelled the market, which saw a 5.9 percent increase for median home prices — to $180,000 from $170,000 — in the last 12 months.
But there just aren’t enough houses on the market to replace those that have sold. The state had just 29,296 homes for sale in April – 19 percent less than April 2017. So even with more than half of all home sales typically taking place between April and August, sales were down in April by 0.4 percent on a year-over-year basis.
New construction will take some time to catch up with demand, but the good news is that seasonally adjusted permits for new residential construction were up 8.4 percent in April, relative to April of last year.
As we ride out this tight market together, we hope you’ll count on Restaino & Associates for all your housing needs, whether its buying or selling your home, finding a rental option or getting acquainted with the community.