Hello,

According to the GMAR (Greater Milwaukee Association of REALTORS), “Home sales were down 17.2% in July compared to the same time a year ago. While that appears to be a big drop, some perspective will help explain the decrease.

First, the 2021 market was the best ever. Year-to-date sales through July were only down 6.3%. Looking back to the first seven months of 2020, the 2022 market was up 6% comparatively.

Second, July sales were negotiated in June, when interest rates were starting to climb. That undoubtedly scared a few buyers away.

Finally, while some buyers stood on the sideline, brokers have been reporting very strong interest among buyers looking for homes all summer. Especially first-time buyers. And many of those first-time buyers are still getting out-bid on properties.

Nonetheless, the real estate market is still operating at a remarkably high level.

We cannot tell if interest rates will fluctuate in the near-term, but rates in the 5% to 6% range are historically normal. REALTORS® will work with buyers to find properties that fit their budget accounting for a normal interest rate.”

—Noel Dedrick