November was another very active month for the Dane County single family home market. Here's our update on all of the current single family home trends in the Madison area.
Dane County home prices
The average price per square foot set a new record for the month of November and rose by 6% year-over-year. Year-to-date through the first 11 months of the year, the average price per square foot was up 9%. The median price was up by 6% in November, and the average was up by 2%. Could these numbers be foreshadowing a moderation in price growth in the year ahead? Check our our 2022 Madison real estate predictions for our thoughts on this topic.
Dane County home sales
Madison area home sales decreased 12% from November of 2020, but were still very strong from an historical perspective, registering the second highest total on record for the month. Remember, the real estate market was unusually strong in the second half of 2020 due to the arrival of the pandemic earlier in the year.
Accepted offers
Single family home buyers were very active in the month of November. A total of 440 contracts were signed in November, which was just below the record high of 444 contract signings in November of 2020.
New MLS listings
New single family home listings continued to enter the market at a slow pace in November. With relatively few listings in the single family home pipeline, we expect the Madison area real estate market to be very competitive in 2022.
Single family home supply
As of December 9th, only 321 single family home listings (or .6 months of supply) were available for purchase throughout all of Dane County. Both of these numbers are very low for our market. Well over 50% of listings are under contract with an accepted offer, which is a very high percentage for this time of year. All of these numbers foreshadow more price appreciation in the months ahead.
Competing offers
The percentage of listings receiving multiple offers continues to set new records in Dane County. Even in the last quarter of the year, many buyers are missing out on their home due to the competitiveness of the market.
Days on market
The average days on market in November was only 23 days, while the average through the first 11 months of the year was only 18 days. Both of these are record low numbers for the Madison area real estate market.
What does the year ahead hold for the Dane County real estate market?
As we wrote in our annual real estate predictions, we believe 2022 will be another very competitive market with plenty of untapped demand and persistently low supply. Interest rates are projected to rise, which should causes prices to moderate to more sustainable levels of growth. You can check out all of our predictions here. In the meantime, please let us know what questions we can answer for you and how we can help you plan for the year ahead.
We wish you and yours a safe and happy holiday season.
Your friends at Mad City Dream Homes
