Tightened Inventory Restricts Home Sales and Increases Prices

Madison, Wis. – The Wisconsin REALTORS® Association released its January 2026 Real Estate Report today, showing that sharply reduced housing inventory continues to limit home sales while pushing prices higher across much of the state.

Existing home sales fell 3.9 percent compared to January 2025, while the statewide median home price rose 7.9 percent to $315,000. The slowdown in sales was driven by a significant decline in new listings, which dropped 11.3 percent year over year. Total listings also fell 1.7 percent, and months of available inventory declined to 2.9 months, well below the six-month mark considered a balanced market.

These conditions underscore Wisconsin’s continued strong seller’s market, with demand outpacing supply. Despite higher prices, affordability improved modestly. The average 30-year fixed mortgage rate fell from 6.96 percent in January 2025 to 6.10 percent in January 2026, helping lift the Wisconsin Housing Affordability Index by 2.2 percent to its highest level since January 2024.

READ THE FULL REPORT HERE

Amy Curler, 2026 Chair of the Board of Directors, Wisconsin REALTORS® Association, stated, “Total listings grew on an annual basis for 28 straight months before declining in January. We suspect this is just a temporary deviation from the trend, and we’re cautiously optimistic that the spring and summer markets will see growing inventories.”

Tom Larson, President & CEO, Wisconsin REALTORS® Association, notes that, “The spike in mortgage rates that began in 2022 saw rates topping out over 7%, and as a result, affordability fell to record-low levels. We really didn’t start seeing improvement until the middle of last year. Since June 2025, the 30-year fixed mortgage rate has fallen by nearly three quarters of a percent to 6.1%, and the Wisconsin Housing Affordability Index has increased nearly 16%. Hopefully these improvements in affordability continue.”

Dave Clark, Professor Emeritus of Economics and Wisconsin REALTORS® Association Consultant, highlighted, “We currently have very limited supply in the housing market, but we do expect significant improvement in the next five years due to the aging of a key demographic group: baby boomers. The youngest boomers are now 62 years old, and the oldest just turned 80. Moreover, according to a 2025 survey conducted by the National Association of REALTORS®, boomers accounted for the largest share of both buyers (42%) and sellers (53%) of homes. As those in this demographic cohort continue to age, their propensity to buy homes will diminish, and their propensity to sell will increase, thereby releasing inventory for younger generations.”

REPORT HIGHLIGHTS:

• Existing home sales declined 3.9 percent compared to January 2025, while the statewide median price increased 7.9 percent to $315,000.cNew listings fell sharply, down 11.3 percent year over year, contributing to a 1.7 percent decline in total listings statewide.
• Months of available inventory dropped 6.5 percent from a year ago to just 2.9 months, signaling a continued strong seller’s market.
• Home prices increased in five of Wisconsin’s six regions over the past 12 months, led by the Northeast (+11 percent) and Southeast (+10 percent).
• The average 30-year fixed mortgage rate declined from 6.96 percent to 6.10 percent over the past year, helping boost the Wisconsin Housing Affordability Index by 2.2 percent.

READ THE FULL REPORT HERE

About the WRA
The Wisconsin REALTORS® Association (WRA) is one of the largest trade associations in the state, headquartered in Madison, Wis. The WRA represents and provides services to more than 17,500 members statewide, made up of real estate sales agents, brokers, developers, appraisers, inspectors, bankers and other professionals who touch real estate. The WRA is under the direction of a statewide board of directors, comprised of members from the top real estate firms around the state.

NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.