Market Reports

Q3 2022 Market Update

Headlines can be scary, but the Madison area real estate market may not be shifting as much as you think. In fact, Madison has always been pretty insulated from major real estate shifts due to its stabilizing influences – the State Capitol, university, major hospitals, and several bigger businesses are some of the factors that keep our market strong. 

In Q3, Dane County experienced a sales decline of approximately 4% in total dollar sales and 14% in total unit sales. But this is not a sign of a market crash or dramatic price drops. The decline in sales was primarily due to the sharp drop in new listing activity (down about 24% vs. Q3 2021). The median sales price in Dane County continues to be high. In Q3 2022, the median sale price was up 10% from where we were in Q3 2021. $/SqFt was also up ~11%. Properties are selling quickly – typically very close to the asking price or above. We still only have about a month of supply. Low inventory is what continues to keep pricing high in our area.

Undoubtedly, rate hikes will continue to negatively impact buyer activity. 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. But will rate increases tapper buyer activity enough to cause property values to drop or shift our market to a buyer’s market? We don’t predict it will in our area. Nationally, there may be some cities – those that saw an excessive amount of appreciation over the last few years – that will see flat or slightly negative growth. But locally, we continue to predict a conservative, healthy degree of property appreciation, likely in the 3-4% range. 

The reality is that we still need more sellers to keep up with demand. Inventory is still too low. Keep in mind that the rising rates are also curbing many sellers’ interest in selling. Many “would-be” sellers have a hard time swapping the 3% rate they locked in in 2021 with a 7% rate today, even if it means getting a home that fits them better.  

It’s still an excellent time to buy and sell if you are in a position to do so. Our team and clients have had a great start to the fall selling season. Our seller clients who have chosen to put their properties on the market have been able to sell quickly at or above their asking prices, and our buyer clients have been able to lock in homes with little to no competition at very market-appropriate prices before rates go up even more. Our team can help ensure you understand the market conditions and reach your goals in this market. Don’t wait for prices or rates to drop – you could be waiting forever. If you are in a position to buy or sell, give us a call today. Let us educate you on the market, so you can make the best decision for you and your family.

Downtown Madison Condo Report

Q2 2022

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Madison Area Housing Report

Q2 2022

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