Dane County home prices increased by 12 percent in April, as low supply and high demand continued to be the two big themes in early 2022. Here's our latest single family home update covering all of the most important trends in Dane County.
Dane County home prices
The price per square foot increased to $213, a new record for our market. Madison area home prices were up by 12% in the month of April and by 16% year-to-date.
New MLS listings
New listings continued to enter the market at a slow pace. Only 681 single family homes were listed for sale in the month of April, which was the third lowest total for the month dating back to the year 2000. Dane County listings were down by 10% in April and by 13% through the first four months of the year.
Available listings and months of supply
Available listings (those without an accepted offer) continue to trend along very low levels. As of May 12th, only 344 single family home listings were available for sale in Dane County, which is the equivalent of .6 months of supply. Supply is tightest in the under $400,000 price categories, where every price category has .4 months of supply or less.
Available listings are trending higher.
Take a look at the trend line below. Available listings bottomed out this year in February and March and are now on a slow, upward trend (which is similar to the trend we are seeing across the nation). We expect the number of available listings to increase throughout the year, which will increase the opportunities for buyers who stay committed to their search.
Our preliminary data through the month of March shows the 2022 market (so far) has been the most competitive market in Dane County history. We do expect the percentage of listings receiving competing offers to peak in April, and then moderate throughout the year.
Accepted offers last month were the lowest for any April since 2012 (with the exception of April, 2020 which was impacted by the onset of the pandemic). A low supply of listings is limiting the number of signed contracts in this year's market.
Madison area home sales dipped lower in April due to a shortage of listings in early 2022.
Days on market
The average days on market in April was only 13 days.
More balance is on the way.
We do expect more balance to return to the market as we make our way through the intense spring season. This means inventory will increase over the next few months, as competing offers decrease. In the meantime we also expect the growth in prices to moderate.
There's no doubt the media and social media will continue to be full of confusing and contradictory messaging for the rest of 2022, so we encourage you to reach out to our team anytime you have questions about the market. We're just a phone call away whenever you're in need of a conversation, and we're always prepared to help.
This article is published courtesy of: Dan Miller, REALTOR Mad City Dream Homes & RE/MAX Preferred