Dane County July Market Update
July 2023 Market Statistics for Dane County, WI How does this June compare to the last 10 years? Just over half way through the year and we are continuing to see a shortage in listings leading to an increase in prices. We are continuing to see the rate of increase cool a little bit. Are we past the peak increases? It will be interesting to watch as the months continue. The average sale price for a single-family home without including condo listings just crested above $500,000 at $507,608 for the first time. Including single family and condo sales the average is at $473,253 almost double what it was 10 years ago. We do not anticipate to much price relief in the future in Dane County as demand on the buyers side remains strong due to the lack of homes for sale. Demand may be building as the population increases without a sufficient supply of homes for people to buy. The chart below shows the extreme change in the number of listings that are on the market compared to years past. If we note that interest rates started to increase at the beginning of 2022, we can see the decrease in listings correspond directly to the increase in mortgage rates. In July of 2021 rates were just under 3%, 2022 rates where just above 5%, 2023 rates are currently 6.8%. This increase has made a lot of homeowners want to stay put while locked into the lower rates. When will this trend change? There are huge debates between agents, different parts of the country, even local vs state markets have seen changes. In Dane County we may need a crystal ball. Make sure you check back to see how the market continues to change.
Dane County June Market Update
June 2023 Market Statistics for Dane County, WI How does this June compare to the last 10 years! We just completed a unique month of June in Dane County. In the chart above it shows that prices have increase again year of year for June. While the rate that it has increased has slowed compared to the last two years prices have still increased 3.5% compared to last June. We are still seeing strong competition and the market is far from cooling off. With an average time on market of 7 days houses are still selling quickly. The unique aspect to June this year is the drop in the number of new listings on the market and as a result the lower number of sales. There where 17% less homes listed this June compared to last June and down 29% from June of 2021. These numbers may seem alarming, but most home owners bought when interest rates where lower and have been hesitant to make a move in the current market. Moving forward we expect the number of listings to stabilize and not continue the current drop. Normal life changes for homeowners will always drive sales to some extent. New construction has also picked up to help absorb some of the buyer demand that we are currently seeing.
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