Three signs of pent-up demand

Posted by Dan Miller, REALTOR on Friday, September 29th, 2023 at 6:06am.

The Dane County real estate market continues to be one where buyers outnumber sellers. How do we know this? Here are 3 key indicators of pent-up demand in the Madison area. 

#1: competing offers

It's true, we aren't seeing listings receiving 20 and 30 competing offers this year. But a high percentage of Madison area listings do continue to receive multiple offers. The percentage remains very high when compared to pre-pandemic levels. 

Madison WI Competing Offers Sept 2023

#2: cash offers

The percentage of listings receiving cash offers is also trending along historically high levels, which is another clear sign of pent-up demand. 

Madison WI cash offers Oct 2023

#3: days on market

And of course, marketing times, remain historically low. Many Madison area home and condo listings continue to sell in a matter of days, not weeks. 

Madison WI days on market Oct 2023

But what about rising rates?

Mortgage rates have continued to rise in September, and we do expect current rates to lead to some softening of demand. And it's possible that prices may even begin to fall.

Even so we expect any drop in prices to be shallow and short-lived. There are simply too many factors at play which point to a long-term shortage of homes and condos in Dane County.

Of course we'll continue to track all of the latest trends on our blog, and we encourage you to check in often for our ongoing updates. We'll be publishing or September reports real soon.

This article is published courtesy of:
Dan Miller, REALTOR
Mad City Dream Homes & RE/MAX Preferred
1619 Monroe Street #1, Madison, WI, 53711

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