Here's our newest look into the Madison area condo market, starting with the price trends for October, 2023.
Dane County condo prices
On a year-over-year basis:
The price per square foot increased from $208 to $223 (7 percent).
The median price increased from $262,450 to $303,000 (15 percent).
The average price increased from $308,198 to $344,720 (12 percent).
On a year-to-date basis:
The price per square foot increased from $203 to $215 (6 percent).
The median price increased from $266,100 to $300,000 (13 percent).
The average price increased from $300,421 to $334,778 (11 percent).
New Dane County condo listings
One big driver of high prices is the low supply of fresh listings. Only 87 Dane County condos were listed for sale in October, which was the lowest October total since 2002.
As a result, the number of active listings (those without an accepted offer) remains persistently low. Only 125 Dane County condos (the equivalent of 1.1 months) were available for sale on November 4th. This is consistent with our November snapshots from each of the last two years.
Note the seasonality of active listings. Active listings tend to be lowest in the springtime and early summer, when buyer activity is at its peak.
With a low supply of available listings, it's no surprise that accepted offers are trending lower in 2023.
Even though fewer condos are going under contract in 2023, the percent of listings receiving competing offers continues to trend along historically high levels. As the chart below shows, the competition for condos remains very high compared to the pre-pandemic market. A highly competitive condo market is a sign of pent-up demand, where the number of condo buyers exceeds the number of condo sellers in Dane County.
The percentage of condos receiving cash offers is also trending along historically high levels, and is much higher than in the pre-pandemic market. This is another sign of a market that clearly has more buyers than sellers.
Days on market
Marketing times continue to trend along historically low levels, which is another sign of pent-up demand in the condo market.
Dane County condo sales
Condo sales continue to occur at subdued levels, due to the lack of supply in the Madison area.
Where will the Madison area condo market go from here?
Stay tuned for our 2024 predictions, which we'll be publishing toward the end of the year. In the meantime, please feel free to reach out to us with all of your real estate-related questions. We'd love to help.
This article is published courtesy of: Dan Miller, REALTOR Mad City Dream Homes & RE/MAX Preferred