The Dane County real estate market continues to run very hot even though we're in the midst of the winter season. Here's our latest update covering all of the most important trends in the Madison area single family home market.
Dane County competing offers
Our preliminary data for the month of December shows competing offers continued to trend at record-high levels at the end of 2021. Forty-one percent of the contracts written in December involved multiple offers, compared to just 34 percent in December of 2020, and 23 percent in December of 2019.
Dane County home prices
When competing offers are at an all-time high, we expect record high home prices to follow once the transactions close 30 to 60 days later. This was certainly the case in the month of January. The price per square foot was $191 in January of 2022, which was a 12% increase from January of 2021. The average price increased 13% in January, while the median price was up 11%.
New MLS listings
A low supply of incoming listings continues to create conditions that are ripe for rising prices. Only 360 single family homes were listed in the month of January, which was the lowest on record for the month. We believe listing activity will continue along subdued levels for the foreseeable future. Stay tuned for our upcoming blog post on this topic.
Months of supply
As of February 11th, only 213 single family home listings were available for purchase in Dane County, which was the equivalent of .4 months of inventory. This is the lowest supply level that we've ever recorded in Dane County. Right now inventory is low in all price categories.
Accepted offers
Demand for real estate is very strong right now, but our low supply market is limiting the numbers of accepted offers in early 2022.
Dane County home sales
Home sales were also lower in January. A total of 246 single family home listings closed last month, which was the lowest total for any January since 2014. We're predicting lower sales in 2022 due to the record low levels of inventory in Dane County.
Days on market
The average time to sell a home reached a new low for the month of January -- another clear indicator of a low supply/high demand market.
Navigating our low supply market
We're clearly in the midst of a fast-moving market, which is great news for anyone planning to sell. Of course, most people who are planning to sell their home also need to buy a new one, and coordinating the purchase with the sale can be be tricky when supply is so low. This is why it always helps to consult with a trusted realtor and a trusted lender who can help you skillfully navigate this year's low supply market.
If you're in need of some guidance and advice, just reach out to one of our full-service agents for a helpful conversation. We'll lay out some next steps for you and connect you with a lender who can help you effectively compete in this year's market. In the meantime, we encourage you to keep checking in with our blog for our weekly tips and updates. We'll have plenty of market insight and helpful tips to share throughout all of 2022.
