Low inventory continues to rule the market in Dane County, and it's low inventory that continues to drive prices higher.
Dane County home prices
On a year-over-year basis:
- The price per square foot increased by 7 percent.
- The average price increased by the same amount.
- And the median price jumped by 12 percent.
Through the first 9 months of the year:
- The price per square foot was up 5 percent.
- The average was up 7 percent.
- And the median was up 6 percent.
New listings
New MLS listings continue to enter the market at an historically slow pace. Only 406 homes were listed for sale in September, which was the lowest on record for Dane County. Listings have been trending much lower since the summer of 2022, when mortgage rates began to move noticeably higher.
Active inventory
Active listings (those without an accepted) remain low in the Madison area. As of October 8th, only 1.5 months of supply were available in all of Dane County.
Accepted offers
Only 324 offers were accepted in September, which was the lowest since 2012. A scarcity of new listings is limiting the number of contracts written in 2023.
Home sales
Dane County home sales (or closings) were also the lowest since 2012.
Cash offers
Cash offers remain very common in Dane County. Eighteen percent of the closings in September involved cash offers, compared to 10 percent just four years ago. A high percentage of cash offers is indicative of a highly competitive market.
Competing offers
Competing offers remain very common and are trending well above pre-pandemic levels.
Days on market
The average days on market in September was only 21 days, which was just one week more than the record low for the month.
Where will the Madison area real estate market go from here?
We may see some short-term softening in prices and demand due to rising interest rates...but there are also many other systemic factors at play which point to a long-term shortage of homes and continued price appreciation.
We encourage you to check in often for our ongoing market updates. In the meantime, please feel free to reach out to us with all of your real estate related questions. We're here to be a resource for you whenever you have any questions or need any help.
