Here's our May update on the Dane County condo market, covering 8 key trends impacting buyers and sellers.
Dane County condo prices
For the first time in a long time, the price per square foot edged lower. Does this mean that local condo prices are falling? We don't think so.
Remember, prices can swing a lot from month-to-month due to the relatively low number of sales in the condo market. A few high-priced or low-priced transactions can have a big impact on the monthly numbers.
Tracking the overall trend is the best way to evaluate prices. With this perspective in mind, it's important to note that the Dane County price per square foot is up by 8 percent through the first 5 months of the year.
Here are the May numbers for 3 different pricing metrics:
- The price per square foot decreased from $227 in May of 2023 to $225 in May of 2024 (a decrease of 1 percent).
- The average price decreased from $343,447 to $342,122 (down by less than 1 percent).
- The median price increased from $303,500 to $308,000 (up by 1.5 percent).
New MLS condo listings
It's encouraging to see listings increase from last May. But in the bigger picture, listing activity remained low. Many condo owners are enjoying their sub-3 percent mortgage rate and choosing not to put their condo on the market.
Dane County condo inventory
Condo availability is slowly improving in Dane County. A total of 166 condos (or 1.5 months of supply) were active on the MLS as of 6/6/2024. Several new construction condo developments have helped to improve supply in the Madison area.
Accepted offers
Contract signings remain sluggish due to the relatively low number of condos for sale.
Competing offers
The percentage of listings receiving multiple offers remains well above pre-pandemic levels. This is one clear indicator of pent-up demand, where the number of condo buyers exceeds the number of condo sellers, in Dane County.
Cash offers
The percentage of listings receiving cash offers also remains elevated compared to the pre-pandemic market. This is another clear sign of pent-up demand. The cash offer percentage jumped from 26% in May of 2019 to 32% in May of 2024.
Days on market
The average days on market in the month of May was only 17 days, which was just slightly above the record low of 15 days set in May of 2022. This is a third clear sign of pent-up demand in the Madison area.
Dane County condo sales
Condo sales increased in May, and were up 6 percent through the first 5 months of 2024.
What does the future hold for the Madison area condo market?
Now that we've made it through the frenzy of the peak spring market, buyers will have an easier road during the second half of the year. With that said, we do expect plenty of competition and high prices for the foreseeable future.
Please reach out whenever you have questions about buying or selling a condo in the Madison area. We're here to help.
