Year End 2022 Market Update
New listing activity decreased significantly in 2022, so it’s no surprise that there were also declines in the number of accepted offers (-19%), dollar sales (-6%), and unit sales (-15%) in Dane County. Q2 & Q3 were the strongest sales quarters, while Q4 had the most significant drop in dollar sales – likely due to the rising interest rates we saw in the back half of the year. Inventory remained exceptionally low in 2022 so there continued to be upward pressure on prices, which were up about 10% throughout the year. In Q2, the median sale price in Dane County rose to ~$400K, marking the highest quarter of 2022. This Q2 peak is consistent with general seasonality and buyer competition in the spring, which was bustling even more as buyers were trying to get ahead of rising interest rates. We anticipate general seasonal trends moving into 2023. However, there may be fewer buyers due to the rate hikes and their impacts on housing affordability.
If you are in the market to sell your home and looking to take advantage of the spring selling season, we suggest targeting a late Q1 or early Q2 listing timeline (March-May). This recommendation may look different depending on your location and property type. Although 2023 is still projected to be a great year to sell due to low inventory levels, sellers should prepare for a different-looking market this year & less competition for homes. Sellers may need to negotiate more with pricing and offer terms as a result. Our team can help implement the best plan for your situation to maximize your exposure & sales price. Call us to discuss numbers, timing & the best strategy to get you top dollar for your sale.
For buyers in the market, this is the season where you will see the bulk of new listing inventory available. If you are in a financial position to purchase, it is still a great time to buy, even with interest rates where they are. Don’t wait! Lock a home in now when competition might not be as fierce as it would be if rates were lower. You can always refinance in the future if rates go down. Meet with a lender and real estate agent early on to help you crunch the numbers and strategize with your offers. Our team would love to partner up! We work hard to scour the market for our clients, set you up with tailored listing notifications, & provide quick access to properties. We also have years of experience working with buyers and a track record of creative negotiating to help you secure a home in a competitive market.