Demand for homes remains strong in Wisconsin, even as supply continues to decline, according to the latest Wisconsin Realtors Association report.

There were 4,143 home sales reported in January, up 8.9 percent from the same month in 2019.

Economist Jeff Tucker with Zillow said one key factor is that mortgage rates were rising a year ago.

"A lot of buyers waited on the sidelines for a while," Tucker said. "The Fed reversed course and started lowering rates. That translated through to lower mortgage rates for buyers.”

Buyers, Tucker said, are coming back even though winter is not typically a peak time of year for home sales.

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The sales increase also comes amid the ongoing decline in housing inventory.

"Our latest numbers for Wisconsin show the lowest amount of inventory on record since Zillow's been tracking it, which is really since the recession,” Tucker said.

The low inventory combined with strong demand continues to push home prices up.

The median home price in the state stood at $190,000 last month, up 8.6 percent from the previous year.