Wisconsin Real Estate Market Recap: 2025 in Review

As 2025 draws to a close, Wisconsin’s real estate market continues to demonstrate resilience and adaptability amid shifting economic conditions. Whether you’re a buyer, seller, or simply interested in the state’s housing trends, here’s a look back at the key themes that shaped Wisconsin real estate this year.

Steady Demand and Tight Inventory

Throughout 2025, Wisconsin’s housing market remained competitive. Much like the Holt Real Estate Team's market in Dane County, where homes averaged just about two months of inventory and sold for nearly 99.8% of their final list price, most regions across the state experienced low supply and steady demand. This persistent inventory shortage kept upward pressure on prices, especially in metropolitan areas such as Madison, Milwaukee, and Green Bay.

According to the Wisconsin REALTORS® Association, statewide median home prices posted modest gains, with many counties seeing single-digit percentage increases compared to 2024. Most homes continued to sell quickly (often within 1-2 months) highlighting the ongoing appeal of Wisconsin’s communities for both local residents and out-of-state buyers.

Interest Rates and Affordability

One of the defining stories of 2025 was the stabilization of mortgage interest rates. After the volatility of prior years, rates leveled off in the mid-6% range, providing buyers with more predictability. While higher than the historic lows seen earlier in the decade, these rates did not deter determined buyers, but they did prompt some would-be sellers to remain in their current homes, further constraining inventory.

Affordability remained a concern in certain markets, particularly for first-time buyers. Entry-level homes under $300,000 were in high demand, often attracting multiple offers. In contrast, luxury properties tended to linger longer on the market, giving buyers more negotiating power in that segment.

New Construction and Regional Differences

Builders responded to the inventory crunch with a steady pipeline of new construction, especially in suburban and exurban areas. However, supply chain challenges and rising material costs meant that new homes often came at a premium. Rural areas and smaller cities generally offered more affordability, while urban centers saw the highest competition and price growth.

Looking Forward: A Message of Gratitude

As we close the final chapter on 2025, we want to take a moment to express our deepest thanks to our clients, colleagues, and neighbors throughout the greater Madison area. Whether we helped you find your perfect home in Stoughton, navigate a sale in the heart of a beloved neighborhood, or plan ahead for a 2026 upgrade, it has been an honor to be a part of your story this year.

The Wisconsin real estate market has seen its fair share of shifts over the last twelve months, but one thing remains constant: the resilience and vibrancy of our local community. We are incredibly grateful for the trust placed in the Holt Real Estate Team, and we don't take the opportunity to serve you lightly.

As we ring in the New Year, we are energized by the opportunities that 2026 will bring. If you're looking to buy, sell, or simply want to chat about what next year has in store for your property value, we are here to guide you every step of the way.

From our community to yours, we wish you a safe, happy, and prosperous New Year. Here’s to finding home in 2026!🥂✨