Market Monday: Waukesha County Real Estate Report 2/24/25

The Lake Country and Waukesha County real estate market remains dynamic and challenging, shaped by a mix of national trends and local nuances. With nearly a decade of experience in this area, I’ve seen how factors like mortgage rates, inventory, and buyer behavior impact the market. Here’s what you need to know right now—and how to stay ahead.

Mortgage Rates Offer Buyers a Boost

The 30-year fixed mortgage rate has dipped to 6.89%, its lowest level since late 2024. While pandemic-era lows are behind us, this slight drop provides a welcome boost for buyers dealing with affordability challenges. If you’ve been waiting, now might be the time to reassess your options.

Inventory Stays Tight

The housing shortage continues to dominate. Many homeowners with pandemic-era low rates are reluctant to sell, creating what’s known as the “lock-in effect.” This keeps inventories tight, especially in sought-after areas like Oconomowoc, Pewaukee, and Delafield, where demand is high. However, we are starting to see some trends that inventory is trending up.

Affordability Challenges Persist

Affordability remains a roadblock, especially for first-time buyers, who face rising home prices and strict lending standards. Millennials, who make up a large portion of this group, are hit hardest. Here in Lake Country, where demand stays high thanks to quality of life and amenities, affordability issues are even more pronounced.

Navigating Today’s Market

For buyers, preparation is key. Start by getting pre-approved to clarify your budget and act quickly when opportunities arise. Flexibility on location or property type can also improve your chances.

Sellers, take advantage of motivated buyers but be strategic. Homes that are priced right and well-prepared—think repairs, staging, and strong marketing—perform best. Avoid overpricing, even in a competitive market, as today’s buyers are cautious and well-informed.

Whether you’re buying, selling, or exploring your options, I’m here to guide you. If you have questions about the current landscape in Waukesha County and Southeast Wisconsin, fire away and I'll provide as much insight as I can!