Madison area home prices continue to appreciate in early 2025, with all signs pointing to more price appreciation in the year ahead. Here's our full report on the January 2025 Dane County single family home market.
Dane County home prices
The price per square foot grew from $226 in January of 2024 to $234 in January of 2025, an increase of 4 percent. Note from the chart below that local home prices have increased by 113% since the most recent market bottom in 2012, and by 156% percent since the year 2000.
New MLS listings
New single family home listings rose modestly in January after dipping noticeably lower in December and November. A total of 437 Dane County homes were listed for sale in January, which was up 6 percent from the 411 listed for sale in January of 2024.
Available inventory
A total of 468 Dane County single family homes were available for sale (without an accepted offer) on February 6th, up from the 405 available homes at the same time last year. Note from the chart below that Madison area home supply has more than doubled since February of 2022. Even so, we currently have only 1.1 months of supply available on the open market.
Also note the seasonality of the market. Available supply tends to be lowest during the first 6 months of the year, when the competition for real estate is highest.
Accepted offers
A total of 268 Dane County single family home listings went under contract in January, which was the lowest January total in the last 14 years. We believe this happened for two main reasons:
1) New listings were especially light in November and December, leading to less fresh supply to choose from in January, and
2) We believe some buyers temporarily paused their search due to uncertainty about their jobs and how they may be impacted by policies of the new administration.
Of course we'll be tracking buyer and seller behavior closely and keeping you updated in the weeks and months ahead.
Competing offers
Two important trends:
The first trend is that competing offers continue to occur more frequently than in the pre-pandemic (2019) market (note the gap between the blue line and the black line).
The second trend is that for many months in 2024 competing offers were lower compared to the year before (see the gap between the green line and the black line). We're cautiously optimistic that competing offers will continue to subside as inventory gradually improves in the new year.
Days on market
The average days on market in January was 47 days, up from 41 days a year ago. Note from the chart below that marketing times are increasing. This is a positive development and a sign that the market is trending toward more balance. We have a long way to go, but we like what we see in this trend and we're cautiously optimistic that it will continue throughout the year.
Dane County home sales
A total of 233 Madison area homes were sold in January, up slightly from the 226 sales a year ago. Sales have been subdued for the last 3 years, since mortgage rates rose above historic lows.
How does Mad City Dream Homes compare to the larger market?
We've summarized our team's performance and compared it to the larger market here. Our performance measures cover price, days on market, competing offers, and cash offers.
Contact us anytime you have questions about the market and how the market impacts your real estate goals. We'd love to be a resource for you, and never with any sales pressure or spin.
