Through the first half of 2017, the Dane County real estate market is setting new records in a continuation of the trends we shared earlier this Spring. Dane County properties are selling quickly. Inventories are low, and prices are increasing. Sales are declining in most locations due to low supply. Here's our market summary covering a few of the county's largest communities.
Home Price Per Square Foot
The price per square foot is our best statistic for measuring property value because it's adjusted according to the square footage of each sold listing. As you can see in the table below, home values are historically high in every community we track. Prices are increasing by some large amounts, especially in Cottage Grove, Madison, and McFarland - where the price per square foot is up by more than 11% from last year.
Condominium Price Per Square Foot
The condo price per square foot is up by 10% or more in 4 of our 5 sampled communities. Condos priced under $250,000 are in very high demand right now. Competition in this price range is fierce and driving prices higher. We expect condo prices to keep on rising due to the high demand for affordable housing in Dane County.
Average Home Prices
Average home prices are higher in every location we track, and in all but one community, the average is up by at least 6%.
Average Condominium Prices
The average condo price has increased significantly in Fitchburg, Madison and Sun Prairie.
Single family home inventory is low in every Dane County community - especially in Madison, McFarland, and Sun Prairie. Also, a high percentage of listings have accepted offers. Low supply combined with a high percentage of accepted offers is a clear indicator of a seller's market.
New construction is helping to support inventory levels in Middleton, Oregon and Waunakee, but most of the home building is at price points well above $400,000. Inventory for more affordable housing is generally very tight across all of Dane County. Right now there isn't enough new construction in the pipeline to satisfy demand. Dane County housing starts are actually lower this year compared to the year before.
Condo supply is very low. In fact, it's lower than home supply in every community we track. Buyers of all ages are embracing the condo lifestyle. Rising rents and a tight apartment market are also fueling the demand for condominiums. Surprisingly, very few new construction condos are being built to address the need for more supply. Inventory levels will remain low until more new condominiums start entering the pipeline.
Home Days on Market
Marketing times have decreased in 7 of our 10 sampled communities, and days on market are at or near historic lows throughout all of Dane County. Madison, Stoughton, Sun Prairie and Waunakee homes averaged less than 40 days on market during the first half of 2017.
Condominium Days on Market
Every community we track has seen significant decreases in condo marketing time compared to last year. Days on market in Middleton, Sun Prairie, and Verona have decreased by more than 40%.
Closings are lower in most cities through the first half of 2017. Verona and McFarland are the only communities in our sample with significant sales growth. In contrast, Cottage Grove, Middleton, Stoughton, and Waunakee have experienced a large drop in sales compared to this time last year.
Dane County condo sales have undergone some big fluctuations, depending on community, through the first half of the year. Sales should even out over the course of the year, showing flat to little growth compared to 2016. The condo market has high growth potential, but it's restricted by low supply.