Here is everything you need to know about the Dane County market in August.
What is happening with the Dane County market? Things are changing in our local real estate, and we have the latest data for you here today.
In our entire market, we’ve seen sales decrease for the seventh consecutive month by 6%. In Dane County specifically, we’re down by 7%. This has helped to stabilize prices in the county, which are holding steady at just below $400,000. That’s 12.6% higher than it was in 2021. Year to date, the average price is $428,488—an increase of 10.2%.
While these prices have been decreasing, inventory is still a pressure point. Over the last year, inventory has decreased. In Dane County alone, we’ve seen a decrease of 25% in new listings from August 2021 to now. From January 2021 through today, available inventory has decreased more than 11%. We’re seeing a low availability of only about a month of inventory across Dane County. In contrast, we’d expect to see about six months of available inventory in a balanced market. This implies that we are still in a great seller’s market.
Interest rates have also been increasing.* Today, we’re sitting at 6.875% for a 30-year fixed mortgage—quite high compared to our previous rates of just under 3%.
The average number of days on the market was about 15 instead of the 14 days in August 2021. We think this trend will continue, with properties staying on the market longer.
Thinking about buying or selling and need my help? Please don’t hesitate to give me a call or email. I’d be happy to answer any questions.
* Note: Interest rates have subsided to 6.5%. Interest rates are volatile and since shooting we have seen a slight decrease.
I’m discussing how coronavirus has affected the stock market and the real estate market.
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What’s going on in our Madison real estate market, and how has it been affected by the issues both nationally and abroad?
Certainly, one of the biggest affairs happening right now is the coronavirus pandemic. I’m not a physician; I can’t give you the best recommendations on how to protect yourself from the virus, but I can provide sources. Centers for Disease Control (which updates five days a week at noon) and World Health Organization are two of the best sites to check out if you want more information about coronavirus. There is a ton of noise out there about this pandemic, so please check these trusted sources before you believe rumors going around.
What does coronavirus have to do with the real estate market? According to Freddie Mac, in late February and early March mortgage applications were up 10% from where they were a year ago. The virus has caused a huge panic in the stock market, the market has had major drops and recoveries recently, back and forth. At 1:40 in the video above you can view a graph that shows what the stock market did during the past five major health outbreaks, including Zika and Ebola.
Looking back, the market fully recovered and then some. The market reacting to health crises is routine.
At 2:25 in the video above you can see what happens to interest rates over the years, starting in 1972. For almost 50 years the 30-year mortgage rate has moved in unison with the 10-year treasury rate. Interest rates are dropping, so this may be a great time to refinance or purchase a home and have the lowest rate in recorded history, which was reported this past week. Locally, the rate is at 3.25% for a 30-year fixed mortgage right now.“
What’s happening locally? Dane County has a current inventory level of 1.43 months. Six months of inventory means a balanced market, where neither sellers nor buyers have the upper hand. So we’re currently in a severe seller’s market with inventory this low. Almost half of the current active inventory is under contract. Madison is at one month of supply, and the surrounding communities vary between one month and just over two months.
The market’s moving quickly; there’s more demand than there are houses. This should continue to push property values up.
If you want more details about a specific Madison area community you can follow this link. Here you can see the average sale price, inventory, what type of market it is, and more. If you want more detailed information on any of the communities listed, please contact me, I can provide you with that data.
If you have any questions or are considering buying or selling, reach out to us. We’re here to help.
Located in the highly-rated Coventry Village on the West side of Madison, 7804 Courtyard Drive is the perfect home for someone ready to step into an active senior living community. The open concept floor plan showcases a great room with vaulted ceilings upon entry to the house, a three season room featuring a solar light and a screen door leading out to the back garden/patio, and ample storage space throughout the house. The master bedroom’s spacious walk-in closet as well as direct access to the roomy master bath make it its own, private suite.
Some additional free perks of owning this condominium in Coventry Village include a communal dining area with continental breakfast, unlimited fitness center access featuring a sauna, library and computer centers, shared lounge with fireplaces, educational programs, and community activities. A few of the services available at a charge include lunch and dinner in the dining area, dry cleaning services, personal transportation, salon services, and housekeeping services.
If you’d like more information on 7804 Courtyard Drive, click here.
Learn more about Coventry Village.
Middleton – Cross Plains Area School District
Conveniently located close to Elver, Sunridge, and Lucy Lincoln Hiestand parks and just steps to Hammersley park. The efficiently designed eat-in kitchen has ample storage space for both seldom used as well as everyday cookware and dishes. A finished basement provides loads of room for recreation and/or entertainment and space for storage. Relax and recharge on the back patio overlooking your new backyard. Come see everything this home has to offer!
About Madison, WI
Madison School District
Orchard Ridge Elementary
Toki Middle School
Memorial High School
Well maintained, 3 bedroom open concept condo in an unbeatable location! Within walking distance of everything Hilldale has to offer: shops, restaurants, Target, Metcalfe’s, Sundance theater, and more! Convenient to UW, hospitals, and the bus line. Kitchen includes newer appliances and an island, plus a dining area. Other features: plenty of cabinets and closet space, in-unit laundry, and a balcony. Heat, hot water, and an off-street parking space included in condo fee!
www.2302UphamSt.comOpen concept bungalow in an awesome location! Set on the corner of a quiet street across from Kelliher Park with easy access to many other parks and bike paths, yet convenient to the interstate and downtown- plus a view of the Capitol! Only a few blocks from Emerson Elem and East High. Nicely landscaped & fenced yard with cherry, raspberry, plum & honey crisp apple trees, roses, lilacs, & a goldfish koi pond! Recent updates: Water heater (2017), washer (2016), new garage door, exterior lights, screen doors, & newer fence. Freezer & shelves in garage included.
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