Analysis from the experts

Analysis from the experts

Home sales and inventory

Shared from Michael Theo, President & CEO, Wisconsin REALTORS® Association

“Given the supply problem, it’s not surprising that sales this summer have not quite kept up with the record pace established last summer. Even though REALTORS® have been moving homes quickly, they can only sell what’s on the market, so we’ll continue to struggle to increase our sales on a year-over-year basis until the inventory situation improves.”

Mary Duff, 2021 Chair of the Board of Directors, Wisconsin REALTORS® Association

Evaluating the national economy

“There is no doubt that inflationary pressures have been increasing, with the annual inflation rate at or above 5% since May. This is also creating potential headwinds for the economy, primarily from supply side problems. Specifically, chronic labor shortages combined with the supply chain challenges have kept businesses from expanding as quickly as they would have liked. Although the national economy is still expanding at a healthy pace with real GDP up more than 6% over the first two quarters of the year, until the labor and supply chain problems subside, we can expect more inflation and economic growth that is below the economy’s potential.”

Dave Clark, Marquette University Economist and WRA Consultant

Home prices, mortgage rates and and affordability

“Strong demand and weak supply create ideal conditions for strong price appreciation, and that’s exactly what we’ve been seeing over the past year. However, there are some preliminary signs that the double-digit price home price increases may be moderating slightly. The annual rate of appreciation was over 14% in May and June, and it fell to just over 10% in July and to 6.4% in August. That is welcome news since unsustainable price increases can reduce demand, keeping creditworthy buyers out of purchasing homes.”

Michael Theo, President & CEO, Wisconsin REALTORS® Association