12/05/25

Market Reports, Real Estate Insights

2025 Dane County Real Estate Market: The Year in Review

Data pulled December 4, 2025 (SCWMLS Dane Co Single Family/Condo 2024 vs 2025)

As 2025 comes to a close, Dane County’s housing market continues to demonstrate resilience, stability, and enduring demand. Despite shifting national economic conditions, rising costs, and evolving buyer expectations, the local market remained active and competitive. Prices continued to rise, homes sold quickly, and overall market activity stayed strong across a range of price points.

Below is a comprehensive look at the numbers shaping the 2025 Madison-area real estate landscape. Plus, what this means for buyers, sellers, and homeowners heading into 2026.

Strong and Steady Sales Activity

Dane County recorded 6,040 home sales so far in 2025, a 1.1 percent increase from last year. While modest, this growth signals a stabilizing market after several years of inventory shortages and interest-rate uncertainty. Buyer demand has remained steady, and well-priced homes continued to attract significant interest.

Sales by Price Range

The $300,000 to $499,999 segment once again dominated the market, reflecting the core of Dane County’s buyer demand. Here is a quick breakdown of sales across all price points:

• $200,000–$299,999: 616 sales
• $300,000–$399,999: 1,235 sales
• $400,000–$499,999: 1,703 sales
• $500,000–$599,999: 910 sales
• $600,000–$699,999: 516 sales
• $700,000–$799,999: 322 sales
• $800,000–$899,999: 214 sales
• $1,000,000+: 266 sales

The continued activity in the upper-price brackets highlights ongoing confidence in the region’s long-term growth, along with increasing demand for updated, move-in-ready homes with desirable amenities.

Home Prices Continue to Rise

Both median and average sale prices climbed in 2025, reinforcing the strength of the market:

• Median Sale Price: $450,000 (+1.6 percent from 2024)
• Average Sale Price: $518,717 (+4.8 percent from 2024)

These increases show buyers remain willing to compete for well-maintained, strategically located properties. Strong school districts, walkable neighborhoods, and proximity to employment hubs continued to draw interest throughout the year.

Total Sales Volume Surpasses $3.1 Billion

Dane County reached $3.13 billion in total sales volume, a significant 6 percent increase from 2024. This growth reflects a combination of strong pricing, steady sales numbers, and consistent interest across the full spectrum of home types — from starter homes to luxury properties.

New Listings Show a Gradual Increase

A total of 7,490 new listings hit the market so far in 2025, up 2.2 percent from last year. After several years of tight inventory, this increase signals a promising shift. More homeowners re-entered the market as interest rates stabilized, life changes prompted moves, and downsizers and relocators took advantage of favorable selling conditions.

Homes Still Selling Quickly

Even with more inventory available, competition remained high.

The median days on market for 2025 was just 9 days, only a slight increase of two days compared to 2024.

Homes that were priced correctly, well-prepared, and marketed effectively continued to attract early showings and quick offers.

What This Means Moving Into 2026

As we look ahead, Dane County is positioned for another year of steady, healthy market activity. While national trends and interest rate shifts will continue to influence buyer and seller behavior, local data points toward a more balanced yet competitive environment.

For Buyers

Expect more choices than in the past few years, thanks to a gradual rise in new listings. However, the market will still reward preparedness. Pre-approvals, clarity on priorities, and readiness to act quickly remain essential. While competition may ease slightly, desirable homes in sought-after areas will continue to move fast. Are you ready to make a move in 2026? Check out our Buyer’s Guide here.

For Sellers

The outlook remains strong. Rising sale prices combined with steady demand continue to create favorable selling conditions. Listing early in the year typically offers advantages, with strong spring demand driven by buyers eager to secure homes before summer. Strategic pricing and thoughtful home preparation will remain key to maximizing results. If you are looking to sell in 2026, we’re here to help you sell with success the first time around. Review our complete Seller’s Guide here.

For Homeowners and Investors

The continued appreciation in both median and average sale prices underscores Dane County’s value as a long-term investment. Increased activity in the higher-end market segments suggests growing confidence in the region’s economic stability and quality of life.

Overall Market Outlook for 2026

If 2025 represented a year of stabilization and consistent growth, 2026 is shaping up to be a year of opportunity. Increased inventory should help normalize competition, while strong values and demand continue to support sellers. Dane County’s thriving economy, expanding housing options, and ongoing population growth will continue to anchor a solid and dynamic real estate market.