Market Reports

Q2 2022 Market Update

In Q2 2022, the Dane County real estate market saw a decrease in total dollar and unit sales of -4.2% & -12.7%, respectively, vs. Q2 2021. The decline is likely a result of a reduction in new listing activity & inventory shortages. We saw a -6.2% decrease in new listing activity during our area’s typically most active quarter of buying and selling. With an inventory reduction, the median sale price rose nearly 11% to ~$400,000 for Dane County. Average sold $/SqFt increased ~12%, & properties were selling quickly with a 25% decrease in average days on market.

Those buyers in the market are paying higher prices on average due to the limited inventory available. Still, rising rates have started affecting buyers & sellers in our local market. Some sellers who were able to lock in a low interest rate before they began to rise have decided to stay put for a while if they don’t have an absolute need to move. On the other hand, buyers see their purchase power change due to the rate increases. As rates continue to climb, many buyers are either priced out of the market or need to decrease their budget to account for higher monthly payments. We will likely continue to see these rate impacts over Q3 & Q4 2022. The real estate market also tends to cool down this time of the year.

Remember that rental prices will increase as more buyers leave the market & start renting. As a buyer, if you can afford your monthly payment now, it’s almost always better to purchase and start building your equity instead of someone else’s. History says that in 5 years, your property will be worth more. Sure, we have been spoiled by very low rates recently, but the reality is that current rates are still quite low if you look at historical averages. Remember that you can always refinance & capture a lower rate in the future if they go down. And if they go up, you can celebrate with the rate you locked in today! You may also be a good candidate for an adjustable-rate mortgage – talk to your lender! An ARM will provide you with a lower rate upfront and adjust after a period (usually 5, 7, or 10 years). These can be a good option if you don’t see yourself in the home long term or are comfortable refinancing in the future. Remember that saving money for a substantial upfront downpayment will also minimize those monthly payments. Ultimately, it’s impossible to time the market perfectly and the best time to buy is when it’s right for you. Our team would love to partner up and develop a strategy if you are in the market to buy!

Although increasing rates will stabilize the market more between buyers & sellers, low inventory still makes it an excellent time to sell your home. In particular, we see intense activity in the lower price points as buyers revise their budgets. Our team can help implement the best plan for your specific situation to maximize your exposure & sales price. Give us a call to discuss numbers, our robust marketing package, timing, & the best strategy to get you top dollar for your sale.

Downtown Madison Condo Report

Q2 2022

Click Here to Download

Madison Area Housing Report

Q2 2022

Click Here to Download