Dane County single family home prices moved significantly higher in February, as buyers continued to compete for a limited supply of homes. Here's our quick update covering all of the latest trends in the Madison area single family home market.
New MLS listings
Only 404 single family homes were listed on the MLS in the month of February, which was a 25% decrease from February of 2021 and a record low for the month.
When we break the data down into weekly trends, we can see that new listing activity continued along record-low levels during the first two weeks of March.
Available listings and months of supply
With fewer listings entering the market, only 251 single family home listings were available (without an accepted offer) as of March 19th. This is the equivalent of .4 months of supply for the whole county. Supply levels are especially tight in the under $400,000 price categories.
Competing offers
Our data available through the month of January shows 54% of all accepted offers during the month involved offers from 2 or more parties. This is up from the previous record of 39% in January of 2021. This is a clear indication that the market has reached a new level of competitiveness in 2022.
Home prices
When competing offers are at record-high levels, we expect record-high home prices to follow. This was certainly the case in February, when the price per square foot jumped to $211, which was 19% higher than the price per square foot from February of 2021. Through the first two months of 2022, the price per square foot is up 17%.
Accepted offers
Contract signings in February were limited by low supply. The 366 accepted offers in February were the 4th lowest total for the month dating back to the year 2000. Accepted offers through the first two months of 2022 were lower by 20%.
Home sales
A total of 288 Dane County homes were sold in February, which was relatively high given the low levels of supply throughout Dane County.
Looking into our crystal ball
As we recently wrote in this article, we believe Madison area real estate will continue to experience high demand and low supply for the foreseeable future. This means sellers will continue to experience long-term price growth, while buyers will need to be flexible with their expectations for their purchase.
For more market insight, please call your favorite Mad City Dream Homes agent with all of your real estate-related questions. We're always available to talk real estate and share our honest opinions and advice.
