Dane County condo prices continued to rise in February, as buyers continued to compete for a limited supply of condominiums. Here's our latest condominium update, covering all of the latest trends in Dane County -- updated for the month of February, 2023. 

Dane County condo prices

The price per square foot increased by 7 percent year-over-year, while the median and the average price increased by 24 percent and 23 percent, respectively. Keep in mind these numbers are based on a relatively small number of sales in the month of February. We fully expect the median and the average prices to moderate as we accumulate more sales data this spring. 

New MLS condominium listings

Only 96 condo listings entered the market in February, which was the

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

Most of our home and condo selling clients start working with us several months, and sometimes several years, before the for sale sign is posted in the ground. Very often this means we're helping our clients identify the simple cosmetic projects that add real value to their home. For example: choosing paint colors and painting projects, installing new light fixtures and new cabinet hardware, and installing new flooring -- to name a few. 

But sometimes, due to challenging circumstances, our clients need an extra amount of support, and we assume the role of general contractor. This was the case for our clients, Luke and Pat, who gave us the keys to their home and an $11,000 budget to address a few cosmetic updates. We stepped in as project managers,

When you think about it, these numbers from the Mortgage Bankers Association are pretty shocking. Right now, applications for purchase loans (excluding refi's) are running 44 percent below the levels from a year ago and at the slowest pace in 28 years. 

And yet, prices keep rising. How can this be? 

Well, one thing we keep learning, based on our daily work in the field, is that we have a significant amount of pent up demand in the Madison area. And although we have no way of measuring it, there's no doubt in our minds that we have tens of thousands of residents here in Dane County who would love to buy a home if there was enough inventory to accommodate.  

The other elephant in the room is that new listings continue to enter the market at the

We're all familiar with these common realtor stereotypes:

Realtors are all about the 3 percent.

Realtors don't work hard for the money.

And realtors have big egos, to name a few.

But when you hire Mad City Dream Homes to assist you with your purchase or your sale, we believe you'll find us to be generous, hardworking, and humble -- and always eager to help. We're grateful for the opportunity to serve you and for the trust you place in our team. 

Thank you and sincerely, 

Your friends at Mad City Dream Homes

Sometimes, due to challenging circumstances, our home-selling clients need an extra amount of support, and we step up to be their project manager. In these cases we're contacting contractors and obtaining estimates. We're scheduling projects and managing timelines. And we're keeping our clients up-to-date on the status of their work. 

This recent condo project on the westside of Madison is the perfect example. By investing $15,000 into paint, flooring, light fixtures, cabinet hardware, and a few other cosmetic updates, our seller was able to improve their condo's market value by more than $50,000. Mad City Dream Homes was a reliable resource throughout -- offering guidance on worthwhile projects, lining up contractors, and overseeing the work. 

We'd like to thank our clients, Jerry and Carolyn, for entrusting their home with us while they were away on an extended vacation. Before they left for their trip, Jerry and Carolyn gave us their keys and asked us to sell their home before their return from the West Coast. 

While they were away

We worked with two of our preferred contractors to complete a few painting projects, change out a few light fixtures, and update cabinet hardware throughout the home. Then we staged the home and launched our marketing, which resulted in a steady stream of showings and 4 very strong offers. In the end, Carolyn and Jerry were elated to accept an offer for well above the list price and with a closing date that was timed perfectly for their upcoming move. 

Who's selling? 

Right now we're seeing most of our sales centered around major life changes. Changes like downsizing into a smaller home and relocating to a new city. And unfortunately, events like death and divorce, too. 

And who's not selling? 

We aren't seeing as many "move-up" sellers as we have in the past. These are the people who are outgrowing their current home and wanting to move up to a larger one. We're learning that many of these folks are choosing to stay put for now, as they consider the impact of higher mortgage rates on their monthly budget.

What's your motivation to sell?

And what questions do you have about the market? Our team is always available for an open and honest conversation, and never with any sales pressure or

Rising prices and limited supply continue to be the two big themes in the Dane County condo market. Here's our latest Madison area condo report, covering all of the latest trends, including: sales, pending sales, days on market, prices, inventory, and much more.

Madison area condo prices

The price per square foot increased by 2 percent in January, while the median increased by 15% and the average by 16%. We do expect prices to continue to rise throughout all of 2023 based on current supply and demand trends. Our preliminary review of the February data indicates prices will be up significantly this month, too. 

New condominium listings

Prices keep rising because new listings continue to enter the market at a slow pace. Only 106 condos were

Who's buying?

Right now we're serving many people who are very motivated to buy their first home and start building a better life through homeownership. Many of these folks are people who have either just started or are getting ready to start their family real soon.

On the other end of the spectrum, we're helping many longtime owners who are getting ready to sell their current home and downsize into a smaller one. These are the folks who are ready to simplify life and ease into a new lifestyle. 

And along these lines, we're also working with many relocating buyers who are working on their dream of living in a community that's a great fit for their values and their lifestyle.

Who's not buying?

We're not seeing as many move-up buyers as we