Dane County home prices continue to move higher in early 2023, but by smaller margins compared to the large increases in 2022 and 2021. Here's our comprehensive report on the Dane County single family home market -- updated for the month of February, 2023.
Dane County home prices
The price per square foot increased 3% year-over-year. The average price and the median price were up 2% and 5%, respectively.
New MLS listings
A lack of fresh housing supply continues to support high prices here in the Madison area. MLS listings decreased 23% from last February and were the lowest on record for the month.
Dane County housing starts
New construction also continues at a relatively subdued pace. Current construction levels are well below the levels from the early 2000's, when home-building peaked in Dane County.
Dane County foreclosures
Foreclosures continue to be a relatively rare occurrence in the Madison area. Distressed property sales account for only a handful of new listings each month.
Fewer people are applying for mortgages in 2023, due to the rise in mortgage rates over last year. Mortgage applications for purchase loans (excluding refi's) are down by about 40 to 45 percent from the year before.
Available listings are up year-over-year, which is a result of fewer people buying in 2023. It's important to note that inventory is still very low from an historical perspective. Right now there are only .7 months of inventory available in all of Dane County.
With fewer homes entering the market, and with fewer people applying for mortgages, fewer listings are going under contract, too.
Dane County home sales
February home sales (or closings) were the lowest since 2012.
Days on market
Marketing times are beginning to rise (slightly) in the Madison area. In the big picture, days on market remain low.
Where will the Madison area real estate market go from here?
There's plenty of talk in the national media about a looming recession, but we're not expecting a housing recession here in Dane County. Our 2023 predictions cover many of the reasons why we expect high prices, limited supply, and relatively strong demand for the foreseeable future. This recent announcement by Epic Systems strengthens our conviction that Dane County real estate will remain a solid, long-term investment.
Please reach out to our realtor team anytime you have questions about the market in your neighborhood. We are here to be a resource for you and help you plan for your future.
This article is published courtesy of: Dan Miller, REALTOR Mad City Dream Homes & RE/MAX Preferred