Are we finally starting to see signs of relief for buyers? Yes! This summer, the market has been a little particular in the greater Madison area. While competition is fierce in some neighborhoods, it is stale in others. While some sellers are seeing multiple offers and ideal terms, other sellers are struggling with an increased time on market and buyers nitpicking their home with negative feedback.
As of the past few weeks, we've finally seen some decreasing (positive!) movement with interest rates; the market has already been pricing in expected rate cuts for September. Rates are in the mid-6s today and expected to continue dropping. Overall in Dane County, homes are selling for 20% faster than they were in July 2023; this is likely due to the decreasing rate environment that we are in today, vs the increasing rate environment that we were in last summer. On top of this, the average sales price is 10.4% higher than last July; in Dane County, it is currently $504,903 for single-family homes. With faster home sales this past July and continued increases in pricing, this is pretty remarkable considering that new listings are up 21% YOY; we had 913 new single-family homes hit the market in Dane County alone in July of 2024!
In any market, location is everything, and averages are exactly that - an average. Certain price points and neighborhoods command different levels of demand and competition, and we are seeing inventory make the biggest impact on the market today. For the homes that are taking longer to sell, we are seeing that this is typically in areas where there is a surplus of new construction - many of the suburbs in the areas surrounding Dane County. With buyers having 21% more inventory options today than they did a year ago, it is more important than ever that homes are turnkey and move-in-ready to stick out from the competition. When they don't, we are seeing increased days on market and slower price appreciation year over year.
