CBEI Central Wisconsin Spring 2024 Report

Housing and Construction Table 11 National Affordability Index (February 2024)

Years

Median Price Existing Single Family Home

Mortgage Rate

Monthly P & I Payment

Payment as % of Income

Median Family Income

Qualifying Income

Composite

2023 Feb. 2024 Feb.

$368,100 $388,700

6.34 6.86

$1,830 $2,040

22.9 24.3

$95,976 $100,876

$87,840 $97,920

109.3 103.0

Description: • Composite Index measures affordability. An index of 150 means that a family earning the median family income has 150% of income necessary to qualify for a conventional loan covering 80% of a median price single-family home. Analysis: • Relative to February of 2023, home affordability declined with both median housing prices and mortgage rates increasing despite rising median family incomes. • The good news is that home affordability has improved relative to Q3 2023 when the Composite Index fell to 94.1!

Table 12 Median Home Prices and Home Sales (First Quarter 2024) Wisconsin Marathon Portage

Wood

2024 Q1

% ∆ Yr. Ago

2024 Q1

% ∆ Yr. Ago

2024 Q1

% ∆ Yr. Ago

2024 Q1

% ∆ Yr. Ago

Median Home Prices

$279,000 6.9 $225,000 -2.2 $245,000 -2.0 $178,500 6.1

Home Sales

11,480

5.5

231

17.3

113

22.8

162

-6.4

Description: • Above table gives median home prices and sales for the state of Wisconsin and counties of Central Wisconsin. • If you list home prices from lowest to highest, the median home price is at the halfway point. Analysis: • Median home prices have moderated relative to a year ago with modest declines in Marathon and Portage counties and modest increases in Wood county and Wisconsin overall. • Home sales for the Q1 2024 relative to Q1 2023 increased significantly in Marathon and Portage counties with a modest gain in the state overall and a decrease in Wood county. • The higher sales may reflect a short term decline in 30 year mortgage rates that peaked at 7.8% in October 2023 to rates below 7% late last year and early this year. Mortgage rates, however, have increased again to over 7% in April.

Table 13 Residential Construction: Stevens Point - Plover Area (First Quarter 2024)

Number of Housing Units

Estimated Value of New Homes (x1000)

Alteration Permits Issued

Estimated Value of Alterations (x1000)

Permits Issued

2024 Q1

2023 Q1

2024 Q1

2023 Q1

2024 Q1

% ∆ Yr. Ago

2024 Q1

2023 Q1

2024 Q1

% ∆ Yr. Ago

40

20

21 $12,592.65 76.3

252

239 $2,768.71 -7.9

44

Description: • The above provides construction figures for both new homes and residential alterations. The above estimated values are in thousands of dollars. Analysis: • The number of new housing units has doubled compared to a year ago and the estimated value of new homes has increased 76.3% relative to Q1 2023. The rebound in residential construction is certainly welcome news. • The number of alteration permits and estimated value of residential alterations declined modestly from a year ago.

20

Center for Business and Economic Insight

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