The Mortgage Bankers Association conducts a weekly survey designed to capture the demand for mortgages across the country. And according to the latest survey released on November 23rd, mortgage applications (for purchase loans, excluding "refis") decreased 41% compared to the same week in 2021. Note from the chart below, mortgage demand slipped considerably in the months of September and October.

How does this trend impact the Madison area real estate market? 

Well, up until just a few weeks ago, inventory was continuing to trend along historically low levels. But now that buyer demand has decreased, we are beginning to see inventory slowly grow again. And as inventory grows, days on market are beginning to slowly increase as some sellers become

The pace of home-building in Dane County is actually quite slow when viewed over the arc of the last 20 years. Take a look at this chart which shows the number of housing starts in Dane County for every October since the year 2000. 

The impact of slow home construction

A low supply of new construction homes is one of the main reasons why we expect high prices and low inventory for many years to come. Here are 6 other local trends which we see driving the market in this direction: 

• New condominium construction has slowed to a near standstill, and is far below what is needed to satisfy the demand for condos in the Madison area. 
• Dane County foreclosures are occurring at an historically slow pace. 
• Many homeowners, who would otherwise

Here's our latest Dane County condo update, which offers some good insight into our new and evolving market. Do you have questions about your condo's current market value? Please contact our team for a helpful consultation.

Dane County condo prices

The price per square foot jumped from $184 in October of 2021 to $209 in October of 2022. That's an increase of 14%. Through the first ten months of the year, condo prices were up 11%.

New condominium listings

One reason condo prices remain high is that new listings continue to enter the market at a slow pace. A total of 107 condo listings entered the market in October, which was the lowest October total in the last 20 years.

Active condo inventory

Housing inventory across the country

Here's our latest scoop on the Dane County single family home market. Do you have questions about home values in your neighborhood? Contact your Mad City Dream Homes realtor for a helpful conversation. 

Dane County home prices

This may come as surprise to some: The price per square foot jumped from $191 in October of 2021 to $218 in October of 2022. That's an increase of 14 percent. Year-to-date, Madison area home prices are also up by 14%. This recent blog post offers a closer look at all of the latest home price trends in Dane County.

New MLS listings

One big reason prices remain high is the lack of fresh supply. Only 396 Dane County homes were listed for sale on the MLS in the month of October, which is the lowest total on record for

How are home prices trending in the Madison area? Here are a few observations which offer some good insight into the Dane County single family home market. 

First, home prices are trending higher at all points along the price spectrum.

Based on our review of the October data, home prices are up significantly at every point along the spectrum. At the lower end, the mid-range, and the high-end -- all price points are trending higher. 

What the data doesn't show.

What these numbers don't show is that buyer demand has decreased noticeably. Because buyer activity has decreased this fall, sellers are experiencing fewer showings and receiving fewer offers. And most important, a greater percentage of sellers are seeing their home sit on the market

Last weekend our team introduced Laura and Shawn and their 3 kids to the Madison area. Laura and Shawn were in Madison because they just lost their Sanibel Island home to Hurricane Ian. Fortunately for this young family, they have the means to start over in a new location that's halfway across the country.

Laura and Shawn are just the latest example of how we see climate change changing Dane County real estate. More and more, we're hearing from people who are choosing to move to Madison, as they seek to escape the effects of a changing climate in other parts of the country. 

According to Freddie Mac, interest rates for a 30-year fixed-rate mortgage have more than doubled since the beginning of 2022, and as of this post they are now above 7 percent.

Where will mortgage rates go from here?

We certainly can't predict the future, but it's conceivable that rates for a 30-year fixed rate mortgage could approach 8 percent by the end of the year. So, for anyone that absolutely needs to sell right now, these last few weeks of 2022 are especially important, because buyer demand continues to decrease as mortgage rates increase.

We'll have much more to share about the market in the coming weeks and months. In the meantime, please reach out to us anytime you're in need of a real estate conversation. We would love to be a

Here's the latest scoop on all of the key trends in the Dane County condominium market. 

Madison area condo prices

The price per square foot set a new record for the month of September, jumping from $184 in September of 2021 to $207 in September of 2022.

New MLS condo listings

One reason prices remain high is that the number of new condominium listings entering the market is quite low. Through the first nine months of the year, new MLS condo listings are entering the market at the slowest pace since 2002.

Condo inventory

Because fewer people are choosing to sell their condo this fall, active inventory remains very low. In fact, there are fewer Dane County condos available for sale right now than there were at the same time last

Here's our latest look at the Dane County single family home market. Do you have questions? Please contact us for a helpful conversation. In the meantime, here's our review of all the latest local trends. 

Madison area home prices

The Dane County price per square foot set a new record for the month of September, jumping from $191 in September of 2021 to $214 in September of 2022. Prices increased 12% year-over-year and 14% year-to-date.

New MLS listings

One reason prices remain high is that new listings are entering the market at a slow pace. Through the first 9 months of the year, single family home listings are entering the market at the slowest pace since the year 2000.

Single family home inventory

Because fewer people are

Right now both groups are a little timid -- which our data makes abundantly clear.

Buyers, for one, are scheduling fewer showings.

According to our data from ShowingTime, buyer traffic is well below the levels from each of the last three years.

Madison area home sellers are less active, too. 

Through the first 9 months of the year, new Dane County single family home listings have been entering the market at the slowest pace since at least 1999 (which is our earliest year for MLS data). What's more, the slowdown in new listings has accelerated in the months of July, August, and September.

Madison area condo sellers are also less active.

Through the first 9 months of the year, new Dane County condo listings have been entering the