Late last year we predicted the Dane County real estate market would be more balanced in 2019, based on the belief that interest rates would rise above 5%. In December, the market did cool as cautious buyers waited out a rocky stock market. The month of January was a different story, however. The stock market stabilized last month and mortgage rates moved lower rather than higher. Local home and condo buyers responded very favorably in January and are very active in the market right now.
Single family home buyers were very active in January
Single family home accepted offers increased in the month of January after decreasing by 19% the month before. As the graph below shows, accepted offers reached the 4th highest total ever for the month of January.
Condo buyers were active in January, too
Condo buyers were very active last month, too. Accepted offers in January were the 4th highest on record for the month.
A note on accepted offers
We track accepted offers because they offer the most current view of the market and are a good gauge of market momentum. Accepted offers also help us detect shifts in the market. Home sales (or closings) are useful to track, too, but they're the result of contracts written 1 to 3 months in the past. For these reasons we tend to think of accepted offers as "breaking news" and home sales as "yesterday's news".
Single family listings were light in January
A low number of Dane County homes were listed for sale in January. With strong buyer demand and a low supply of incoming listings, this year is shaping up to be a good year for sellers.
Condo listings were light in January, too
Condo listings in January were the 2nd lowest on record for the month. Market conditions are shaping up nicely for condo sellers as we approach the hot Spring market.
A quick note on January home and condo sales
Dane County home sales decreased by 34% and Dane County condo sales decreased by 6% in January. Remember, these numbers reflect decreased buyer activity at the end of 2018. Buyers have returned to the market strongly in 2019, so we're expecting much better sales numbers in the months ahead.
For more great real estate information
Check out our Madison single family home and Madison condo market reports. Both reports offer a comprehensive view of the local real estate market, updated monthly. Do you have questions about how you can best achieve your buying and selling goals in 2019? Please reach out to us for a short and helpful conversation.
This article is published courtesy of: Dan Miller, REALTOR Mad City Dream Homes & RE/MAX Preferred