April sales of existing homes fell almost 11% in Wisconsin, a drop-off industry professionals say is the result of a short supply of houses on the market.
Although the demand for homes remains high — and is pushing up prices — the inventory of homes for sale is 28% lower than only two years ago, according to the Wisconsin Realtors Association.
"While Realtors have been doing more with less for the better part of two years, eventually the lack of supply catches up with you, and that's exactly what's happening here," Erik Sjowall, chairman of the state Realtors group, said in a statement Monday.
The Realtors organization's data shows 6,608 closings on home sales in April in Wisconsin, compared with 7,403 in April 2016. With the year-over-year April slide in home sales, total sales were down 1.5% for the first fourth months of 2017 compared with 2016, to 20,055 from 20,361.
The limited supply of homes on the market drove up prices. The median price of Wisconsin homes sold in April was $171,000, a 6.9% increase from $160,000 in April last year.
Through the first four months, the median home sale price statewide was up 5.7%, to $163,000 from $154,198, the Realtors data shows.
Home sales decreased in five of the state's six regions. The only region that saw a slight increase in sales was the Central region of Wisconsin, at almost 1%.
MIchael Theo, president and chief executive of the Wisconsin Realtors Association, said the dearth of inventory isn't confined to the state. It is national.
"The tight inventories are not just a Wisconsin phenomenon. They are hitting a lot of regions hard," Theo said.
Generally, homes aren't staying on the market very long once they're listed. The average days a house was for sale on the market in April 2016 was 103. That was down to 87 days in April this year.
With plentiful jobs and low interest rates, the demand for houses is expected to remain high.
"Buyers who don't have their financing arranged will be edged out by prequalified buyers or those with cash offers, so moving quickly is crucial in this market," Theo said.
