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May 2025 Home Sales Report

May Home Sales Decline by Modest Margin as Prices Rise

Date: June 19, 2025

May 2025 at a glance

  • Existing home sales fell for a third straight month, but the pace of decline moderated in May. Specifically, closed sales fell just 2.1% over the past 12 months, which is well below the annual slide in home sales seen in recent months: March sales declined 8.6%, and April sales declined 9% year over year. Relative to May 2024, the median price rose 4.3% to $330,000.
  • Year to date, home sales fell 2.7% compared to the first five months of 2024, and the median price rose 6.8% to $315,000 over that same period.
  • The average 30-year fixed mortgage rate fell 24 basis points to 6.82% over the last 12 months.
  • The statewide inventory picture has improved. While new listings fell 1.5% in May compared to that same month last year, total listings rose 8.5% to just over 22,000 homes on the market, and months of available supply increased 8.3% to 3.9 months of supply.
  • All urban classifications saw improvement in months of supply. Metropolitan counties with large cities as well as micropolitan counties with smaller cities and towns remained strong seller’s markets, with just 3.5 and 4.1 months of supply, respectively. However, rural counties improved to 5.7 months of supply in May 2025, which is close to the six-month benchmark indicating a balanced market.
  • Affordability improved 5.1% over the past 12 months but remains low by historical standards. The Wisconsin Housing Affordability Index measures the percent of the median-priced home that a buyer with median family income qualifies to purchase, assuming 20% down and the remaining balance financed with a 30-year fixed mortgage at current rates. The index value was 124 in May 2025. The WRA has tracked affordability since 2009, and the lowest value for the index was 116, recorded in June 2024.

Additional analysis

Inventory Improvements

"As we move into the peak period for sales, it’s good to see a solid improvement in inventory levels over the last 12 months. More housing inventory will help moderate price appreciation and will lead to more buying opportunities."

Chris DeVincentis, 2025 Chair of the Board of Directors, Wisconsin REALTORS® Association

Affordability Trends

"Median family income increased 7% since May of last year. This increase, combined with a slight improvement in the 30-year mortgage rate and moderately lower price appreciation over the last year, led to a slight improvement in affordability. Hopefully these trends continue and will help first-time buyers achieve the goal of homeownership."

Tom Larson, President & CEO, Wisconsin REALTORS® Association

Inflation Remains Stable

"The Fed’s preferred measure of inflation is core inflation, which removes the volatile influence of the food and energy sectors. The Consumer Price Index core inflation measure remained stable in March, April and May at 2.8%, which is a four-year low for this measure. While core inflation remains above The Fed’s target rate of 2%, it does suggest inflation has stabilized. Avoiding inflationary spikes is key if The Fed is to lower short-term interest rates later this year."

Dave Clark, Professor Emeritus of Economics and WRA Consultant

About the WRA

The Wisconsin REALTORS® Association is one of the largest trade associations in the state, representing over 17,500 real estate brokers, salespeople and affiliates statewide. All county figures on sales volume and median prices are compiled by the Wisconsin REALTORS® Association and are not seasonally adjusted. Median prices are only computed if the county recorded at least 10 home sales in the quarter. All data collected by the WRA is subject to revision if more complete data becomes available. Beginning in June 2018, all historical sales volume and median price data from 2015 forward at the county level have been re-benchmarked using the Relitix system that accesses MLS data directly and in real-time. Data prior to January 2015 is derived from the Techmark system that also accessed MLS data directly. The Wisconsin Housing Affordability Index is updated monthly with the most recent data on median housing prices, mortgage rates and estimated median family income data for Wisconsin. Data on state foreclosure activity is compiled by Dr. Russ Kashian at the University of Wisconsin-Whitewater. 

Note that the WRA employs a slightly different protocol to determine inventory levels than the protocol used by the REALTORS® Association of South Central Wisconsin (RASCW). For consistency, the summary tables for the South Central region reported in the WRA release employ the WRA approach. However, a modified table employing the RASCW methodology is available from the WRA upon request.