Dane County home prices continued to move higher in the month of August, and by all measures. Here's our latest single family home update for the Greater Madison area.
Home prices
The price per square foot increased from $210 in August of 2022 to $220 in August of 2023, an increase of 5 percent. The median price increased by 1 percent, while the average price increased by 4 percent.
Through the first 8 months of the year, prices were also up by every measure:
- The price per square foot was up by 5 percent.
- The median was up by 5 percent.
- And the average was up by 7 percent.
New listings
New listings continued to enter the market at a slow pace. For only the second August this century, fewer than 500 homes were listed for sale in Dane County.
Inventory
Available listings (those without an accepted offer) are rising, as they normally do this time of year. Still, inventory remains very low by historical standards. We expect prices will continue to rise for as long as inventory remains low.
Competing offers
We see several clear signs of pent-up demand in the Madison area, and one of them is the percentage of listings receiving competing offers. Competing offers continue to be much more prevalent in 2023 than in the pre-pandemic market.
Cash offers
Another clear sign of pent-up demand is the percent of listings receiving offers without financing contingencies. Cash offers are trending along record highs, and are much more common compared to pre-pandemic levels.
Days on market
And yet another clear sign of pent-up demand is the amount of time it takes to sell a home. Days on market continue to trend near record lows in Dane County.
Accepted offers
The number of homes going under contract in August was the lowest in 12 years. Prices are at all-time highs in the Madison area, even though contract signings are low and interest rates have been trending higher.
Dane County home sales
August home sales (or closings) were also the lowest in 12 years.
What to expect moving forward
We expect heavy competition and high prices due to a scarcity of supply and an abundance of people moving to Dane County. So, if your goal is to buy a home in the near future, it's imperative for you to consult with a professional. You need to have a good plan for buying in this market, and of course it always helps when you have a caring, attentive, and committed agent supporting you.
