View the current housing market status for the Madison, Wisconsin area. We break it down by home sold and those currently active in our Multiple Listing Service (MLS). This report also features the average home sales price and the type of financing utilized by homebuyers.
January 27, 2019
Dane County Real Estate Market Update
3RD BEST EVER!
While December sales of single-family and condominium homes in Dane County fell short of the prior two years, 2018 still ended with 8002 annual sales and enters the record books as the third best year ever behind 2016 (8085) and 2017 (8079). For the third consecutive year, Dane County condominiums accounted for 22% of the total sales.
Throughout the 16-county region* served by the SCWMLS, sales were down in December. However, annual sales ended 2.8% ahead of 2017.
For 2018, the median sale price in Dane County is $278,000 compared to $264,000 last year, a 5.3% increase. This increase has moderated from the 7.8% jump in 2017 over 2016.
For the entire region, the median price for 2018 rose to $220,000 from $209,000 – also a 5.3% increase.
For the 5th month in a row, new listings and active listings at the end of December in Dane County were higher than in 2017. Yet the supply of active listings remains lean in many price ranges. We are hopeful that the mild winter we have enjoyed to date and the traditional increase in listing activity as spring approaches will help begin to rebuild the housing selection for prospective buyers.
The supply of inventory for the entire region stands at 2.5 months. As a general rule, a 6-month supply of homes for sale is considered a balanced market between buyers and sellers.
As reported on January 10th by Freddie Mac, the 4.45% interest rate on a 30-year fixed rate mortgage is the lowest rate since April 19, 2018. While this rate is higher than one year ago, it still represents a historical low. The average rate for a 30-year mortgage from 1972 – 2018 is 8.09%.
WHAT’S AHEAD FOR 2019
We continue to look for trends and indicators as to the direction of the market into 2019. Many are forecasting interest rates will rise again throughout the year. Home prices are also expected to continue to go up, but perhaps with increases tempered. The low mortgage rates available presently and the new listings coming on the market may be incentive for prospective home buyers to be active now rather than waiting.
*Adams, Columbia, Crawford, Dodge, Grant, Green, Green Lake, Iowa, Lafayette, Marquette, Richland, Rock, Sauk, Vernon, and Waushara Counties.
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