Madison area single family home prices increase 3 percent in February

Posted by Dan Miller, REALTOR on Tuesday, March 14th, 2023 at 4:20am.

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. 

Madison WI Home Prices March 2023 

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. 

 Madison WI New MLS listings Feb 2023

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. 

Madison WI housing starts Feb 2023

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. 

Madison WI Foreclosures Feb 2023

Mortgage applications

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. 

Dane County Mortgage Applications March 14 2023 

Active listings

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. 

Madison WI Home Supply March 2023

Accepted offers

With fewer homes entering the market, and with fewer people applying for mortgages, fewer listings are going under contract, too. 

Madison WI accepted offers Feb 2023

Dane County home sales

February home sales (or closings) were the lowest since 2012. 

Madison WI Home Sales Feb 2023 

Days on market

Marketing times are beginning to rise (slightly) in the Madison area. In the big picture, days on market remain low. 

Madison WI Days on Market Feb 2023 

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
1619 Monroe Street #1, Madison, WI, 53711

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