The Madison area real estate market ends 2020 with a strong finish

Posted by Dan Miller, REALTOR on Monday, January 11th, 2021 at 9:36am.

December was another strong month for the Dane County single family home market. Here's our quick overview of the latest single family home trends and a sneak peek at what lies ahead in 2021. 

Madison area home sales

Dane County home sales set a new record for December, increasing by 17% from December of 2019. Home sales set a new annual record in 2020 and grew by 7% from the year before. 

 Madison WI Single Family Home Sales Dec 2020

Accepted offers

Accepted offers decreased 4% year-over-year, but buyer activity was still strong compared to most other Decembers over the last 20 years. 

Madison WI Single Family Home Accepted Offers Dec 2020

Expired Listings

Expired listings reached a new low for the month of December. Low inventories and strong buyer demand have created a market with very few expired listings. 

Madison WI Expired Single Family Listings Dec 2020 

Days on Market

The average days on market in December was the lowest on record for the month, and the average for the year was the lowest on record, too. 

Madison WI Single Family Days on Market Dec 2020

Competing offers

So far, through the month of November, 35% of all single family home listings have involved multiple offers. This is a record high for our market. Listings priced under $300,000 tend to be the most competitive. 

Madiso WI Competing Offers Nov 2020 

Madison area home prices

The Dane County price per square foot increased by 13% in December and 6% for the whole year. Low inventories and a low number of new MLS listings are helping to drive prices higher (see below). 

Madison WI Home Prices Dec 2020

New MLS listings

New listings have been entering the market at a subdued pace for the last 12 years. That trend continued in December. 

Madison WI new MLS listings Dec 2020

Percent of listings under contract

Right now, 44% of all listings are under contract with an accepted offer (a high number for this time of year). There are only 354 single family home listings without an accepted offer in all of Dane County. 

Madison WI Single Family Home Listings Under Contract Jan 9 2021 

Months of supply

Currently there are only .6 months of single family home supply in Dane County. Listing supply is especially tight for homes priced under $400,000. 

Madison WI Months of Inventory Jan 9 2021

What to expect in 2021

We're expecting another year of strong sales and rising prices in the Madison area (check out our recent blog post for our 7 predictions). Although the market will be favorable to sellers in 2021, there are some pitfalls for sellers to avoid in the coming year. Stay tuned for our blog post on this topic, which we'll be publishing real soon. 

This article is published courtesy of:
Dan Miller, REALTOR
Mad City Dream Homes & RE/MAX Preferred
610 Junction Road #205, Madison, WI, 53717

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