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.
Accepted offers decreased 4% year-over-year, but buyer activity was still strong compared to most other Decembers over the last 20 years.
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.
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.
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.
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).
New MLS listings
New listings have been entering the market at a subdued pace for the last 12 years. That trend continued in December.
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.
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.
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