Mid-Year Real Estate Check-In: What’s Holding Up, What’s Changing, and What It Means for You
We’re officially past the halfway point of 2025, and even if you’re not planning to move anytime soon, it’s still worth paying attention to what’s happening in the housing market. Why? Because real estate—both locally and nationally—is one of the clearest mirrors of the broader economy. Home prices, buyer activity, and market trends track closely with consumer confidence, job growth, interest rates, and inflation.
So now’s a good time to check in: What’s holding up from earlier predictions, what’s changing, and what does it all mean as we head into the second half of the year?
Let’s dig in.
1. Pent-Up Demand: Still Waiting in the Wings
At the start of the year, many expected that demand—held back by rates and uncertainty—would finally show signs of life. And to some extent, it has. In Western Wisconsin, we’ve seen an increase in activity compared to the past two years.
From January through June:
2025 saw 2,923 closed sales
That’s up from 2,750 during the same period in 2024
And up 16% over the 2,515 closed in the first half of 2023
This is a positive shift. Buyers are clearly getting back into the market—but it’s happening gradually, not all at once. With slightly lower rates and improving inventory, we may be in for a more active fall than we’ve seen in the last couple of years.
2. Interest Rates: Down Slightly, But Not a Game-Changer
Rates haven’t dropped dramatically, but they’ve eased just enough to bring renewed interest—particularly from serious buyers who were previously on the sidelines. Nationally, rates have dipped from around 6.85% in January to roughly 6.77% today.
It’s not a huge drop, but paired with seasonal motivation and a stronger sense of market stability, it could make a meaningful difference in the second half of the year—especially locally, where many buyers are watching monthly payment potential closely.
3. Home Prices: A Steady Market, but Very Property-Specific
Locally, home values are holding steady. But what’s really important to understand is that value is increasingly tied to the individual home—its condition, location, and how it’s presented.
The median sale price in Western Wisconsin rose from $286,500 in January to $310,000 in May, showing healthy growth on paper. But not every listing tells the same story. Some homes—particularly those that are outdated, overpriced, or in less desirable segments—are sitting longer and even selling under asking. Meanwhile, move-in-ready homes in high-demand price points are still seeing multiple offers and selling quickly, often over list price.
The takeaway? While average prices are stable, results are highly property-specific. Sellers who prepare and price strategically are still seeing strong outcomes.
4. The Real Cost of Homeownership Is Rising—Including Insurance
Homeowners are feeling the impact of rising costs beyond the sale price. In Wisconsin, home insurance premiums are projected to rise 8% in 2025, increasing from $1,892 to $2,050 annually, according to Insurify. That’s an extra $158 per year, or about $13 per month—and it comes on top of rising utility bills, property taxes, and maintenance.
Even though we don’t deal with the extreme weather risks that coastal markets do, this increase still affects affordability—especially for first-time buyers or those on fixed incomes. Many of the homes in our area are older and require ongoing upkeep, making total monthly costs a more important part of every buying decision.
5. Renting: Demand Remains Strong, but Investment Opportunities Are Mixed
High purchase prices and persistent affordability challenges continue to keep many would-be buyers in the rental market—especially younger adults or those with limited down payment savings. But the rental picture in Western Wisconsin is shifting, and it’s not all upside.
We’ve seen a notable increase in apartment construction in recent years, particularly in Eau Claire, Menomonie, and Chippewa Falls. That new supply is creating increased competition among landlords, putting pressure on rent prices and vacancy rates.
On the investment side, opportunities are limited. There aren’t many income-producing properties hitting the market, and when they do, the asking prices often don’t align with the rents they generate. In many cases, the numbers just don’t work—especially with today’s financing costs.
So while rental demand remains steady, investors need to be cautious and run the numbers carefully. What worked a few years ago might not work now.
Looking Ahead: What to Expect This Fall
The Fall Market Could Be the Busiest Since 2021
Rates are down just enough, and inventory is loosening in some key segments. Buyers and sellers who sat out the spring may finally feel like now is the right time. In Western Wisconsin, we typically see a strong push from late August through early November—especially before winter weather slows activity.
Cash Buyers and Investors Are Returning
With more homes sitting on the market, sellers are placing higher value on speed and certainty. That’s where cash offers—whether from downsizers, out-of-area buyers, or investors—can make a strong impact. I’ve already started seeing more cash-ready buyers this summer, and I expect that trend to continue.
Final Thought
This market is shifting—but it’s not stalling. Whether you're thinking about buying, selling, or simply staying informed, this is a moment where strategy matters more than ever. If you’re unsure where to start or just want to understand how the current landscape applies to your situation, let’s talk.
No pressure—just perspective and a plan that fits your goals.
