Dane County home prices increased by double-digits for the 5th straight month in July, but we're seeing signs that price growth may be moderating soon. Here's our latest update on the Madison area single family home market.
Dane County home prices
Dane County home prices increased by 10% year-over-year and by 12% year-to-date. The average July home price was a whopping $419,402, and July was the fifth straight month that the average home price landed above $400,000. However, we do believe price growth will moderate in the months ahead based on some of the trends that we are observing right now.
Percent of sales with competing offers
Our preliminary data through the month of June suggests that the percent of home sales with multiple offers peaked in the month of May, which is consistent with our day-to-day observations out in the field. On the whole we're observing more balance in our late summer market, which we view as a very positive development. For the long-term health and sustainability of the market we'd like to see our competing offer numbers continue to trend lower and dip well below 40%.
Accepted offers
In a "normal year", buyers are most active during the spring months. Last year, the onset of the pandemic shifted the peak season to the summer and fall seasons. Although the number of contracts written this July was much lower than in July of 2020, accepted offers were still very high from an historical perspective.
New MLS listings
Inventory is growing right now because new listings are entering the market at a faster pace than offers are being written. A total of 728 new MLS listings hit the market in July, while 552 listings went under contract. This is another reason why we believe price growth will moderate in the months ahead.
Dane County inventory
The shaded column below shows the number of single family home listings without accepted offers by price range. Right now there are 592 available listings in Dane County, which is roughly twice the number of available listings during this year's peak spring season. Because inventory is growing, it's a good time for buyers to stay focused on their search and stay committed to their home-buying goals.
Dane County home sales
Home sales were very strong in July. A total of 746 Dane County homes were sold last month -- the second highest on record.
Days on market
The average time to sell a home continued to trend toward historically low levels in July. The average days on market in July was only 15 days.
What questions do you have about the Madison-area real estate market?
Please reach out to us with any questions you may have about buying, selling, or investing in the Dane County area. We always enjoy talking about the market and sharing what we know. In the meantime, stay tuned for our latest condo market update. We'll be releasing our July report in the next few days.
