January 2026 Housing Market Update: Prices Up 9.5% Despite Slower Sales

The latest housing data from the Greater Milwaukee Association of REALTORS® shows a mixed start to 2026 across the Metropolitan Milwaukee market. While home sales dipped compared to last year, prices continue to climb — and inventory remains tight.

Let’s break down what it means for buyers and sellers.

Home Sales Down, But It’s Too Early to Call a Trend

Home sales in January were down 9.9% compared to January 2025 across the four-county metro area (Milwaukee, Waukesha, Ozaukee, and Washington Counties).

However, January historically represents just 5.1% of annual sales over the past decade, making it one of the slowest months of the year. Because of that, it’s difficult to draw major conclusions about the direction of 2026 from January alone.

Given current economic conditions — including employment levels, interest rates, and ongoing inventory constraints — 2026 appears poised to look similar to 2025.

County-by-County Snapshot (Metro Area)

• Milwaukee County: Sales down 15.0%

• Waukesha County: Sales up 1.3%

• Ozaukee County: Sales down 13.6%

• Washington County: Sales down 5.0%

Across Southeast Wisconsin as a whole, sales were down 9.0% year over year.

Listings Are Improving — But Still Not Enough

There is some encouraging news: listings in the Metro area rose 2.4% year over year in January.

• Milwaukee County: +1.9%

• Waukesha County: +12.6%

• Metro Total: +2.4%

Inventory has been rising for over two years, increasing in 23 of the last 31 months. That’s progress — but it’s still far from enough to meet demand.

Still a Strong Seller’s Market

The Metropolitan Milwaukee area remains firmly in seller’s market territory.

• 2.4 months of inventory currently available

• When factoring out homes with active offers, inventory drops to just 1.2 months

• A balanced market requires 6 months of inventory

• The region would need 5,050 additional listings to reach that balanced level

Homes averaged 37 days on market, just one day longer than January 2025.

As long as inventory remains this tight, sellers continue to hold the advantage.

Prices Continue to Climb

Limited supply continues to push prices higher.

In January 2026:

• Average sale price increased 9.5% year over year

• The average sale price reached $407,818

When demand outweighs supply, upward price pressure is inevitable — and that’s exactly what we’re seeing.

The Bigger Concern: Long-Term Housing Supply

While rising home values benefit current homeowners, there’s a long-term concern if additional housing supply isn’t created.

A shortage of single-family homes and condominiums means:

• More would-be buyers are forced into rental housing

• Fewer families are able to build equity

• Long-term wealth-building opportunities shrink

Without meaningful increases in supply, future generations may struggle with limited access to homeownership — and fewer financial options tied to home equity for education, renovations, or emergencies.

What This Means for Buyers

• Competition is still strong.

• Prices are rising.

• Inventory remains limited.

Buyers need a clear strategy, strong financing, and expert guidance to succeed in this market.

What This Means for Sellers

• You’re still in a strong negotiating position.

• Low inventory means less competition.

• Pricing correctly is critical to maximizing value.

With demand outpacing supply, well-prepared homes continue to sell efficiently.

Final Thoughts

January’s numbers reflect a market that remains competitive and supply-constrained. While sales volume dipped, prices and inventory trends reinforce that we are still operating in a seller-leaning environment.

If you’re thinking about buying or selling in 2026, understanding local inventory levels, pricing trends, and competition will be key to making smart decisions.

If you'd like a personalized breakdown of what these numbers mean for your specific neighborhood or price point, let’s connect.