Experts agree that 2022 began with the strongest seller’s market in years – due to really strong demand, low mortgage rates and limited supply. It was the perfect time to list your home before mortgage rates began trending up from all-time lows.
As summer came, demand remained strong, despite rapidly rising mortgage rates and historic inventory lows driving up prices.
By fall, these trends led to declining home sales, and months of more monthly sales than new listings of homes. Add to that the highest mortgage rates since 2008 and demand could only soften with affordability issues – but the demand was still stronger than supply so sellers remained in a good position.
At the end of the year, you can see that most sale prices were under listing price in the local areas of Delafield, Hartland, Pewaukee and Oconomowoc, signalling buyer apprehension and less competition.
But on a positive note, the market also finally saw the lowest rate of home price appreciation all year and a slightly decreased mortgage rate (although still double its rate from the year prior), which is enough to signal turning a corner in affordability and shifting the dynamic for buyers.
*data from Wisconsin REALTORS® Association & metro milwaukee mls
