Market Monday: Waukesha County Real Estate Report 3/3/2025

Real estate markets across Milwaukee, Wisconsin, and the U.S. continue evolving as we move through March 2025. Stabilizing mortgage rates, affordability pressures, and incremental inventory improvements are shaping the landscape for buyers and sellers alike.

Key Market Trends

Mortgage Rates Hold Steady
After years of fluctuations, the 30-year fixed mortgage rate has leveled between 6.75% and 7%. While still above pre-pandemic levels, this stability offers some predictability. Many buyers are considering adjustable-rate loans and rate buydown options to alleviate affordability challenges.

Inventory Makes Small Gains
Milwaukee-area listings increased 10.9% year over year in January, providing buyers with more choices than in recent years. Builders are addressing demand for entry-level homes, but supply chain disruptions continue to delay new certifications. Inventory remains tight, with significant growth needed to meet the state’s housing demands by 2030.

Home Prices Continue to Rise
Milwaukee home prices are expected to climb 2.4% this year, reaching a median of $343,920. Across Wisconsin, home values have risen 6.1% year over year to an average of $304,676. Although price growth has slowed compared to the pandemic boom, continued appreciation is further straining affordability.

Waukesha County and Wisconsin Market Overview

The Greater Milwaukee housing market saw some early-year momentum, with home sales rising 7.1% in January. However, it ranks as one of the least competitive metro areas among the nation's largest cities, in part due to declining local job growth. Statewide, Wisconsin reflects greater balance, with homes selling near list price on average. Yet, the market struggles with ongoing shortages and declines in newly listed homes.

National Housing Trends

Nationally, home price growth has moderated to 2-3% annually, and inventory is improving incrementally as new construction offsets shortages. Buyers are adjusting their priorities, seeking energy-efficient spaces and adaptable layouts for hybrid work lifestyles, while sellers face increased competition amid heightened scrutiny from cautious buyers.

Despite challenges, the housing market in March 2025 presents opportunities for those prepared to adapt to evolving conditions and make informed decisions. Whether in Milwaukee, throughout Wisconsin, or nationally, understanding these trends is key to navigating today’s dynamic market.