How is the Madison condo market performing? Our newest Dane County condo report offers an objective look at all of the latest trends, including prices, sales, accepted offers, days on market, and more.
Madison area condo prices
The median price for a Dane County condo increased by 14 percent in December while the price per square foot increased by 4 percent. (Note: monthly prices can fluctuate due to the relatively small numbers of condos being sold each month. So, we focus more on the trend over time, instead of the price statistics for any individual month).
Why do Dane County condominium prices continue to rise? One big reason is fewer condos are being listed for sale in the Madison area, which we cover in the next section below.
New condominium listings
Only 40 Dane County condos were listed for sale on the MLS in December, which was a decrease of 60% from the 100 MLS listings in December of 2021. The 40 condos listed for sale last month was a new low for the month of December.
Why is the incoming supply of new condo listings so low? One reason is many condo owners are locked into historically low mortgage rates right now, which has caused some potential sellers to put their selling plans on hold -- now that interest rates are higher. Another reason is the low number of new construction condos that are being built. Very few condos have been built in the last 15 years, as developers and financial institutions have favored apartment buildings over condominium projects.
Active condominium listings
The number of available (or active) listings right now is actually slightly lower than the number of available listings at the same time last year. Only 89 Dane County condos were available for sale on January 8th, compared to 100 listings on January 8th of 2022. We anticipate our consistently low levels of supply will support strong prices in the Madison area for the foreseeable future.
Accepted offers
The number of condo listings that went under contract last month decreased by 33% from last December. However, the demand for condos here in the Madison area is actually quite strong given the number of condos that are available for sale. For example, the number of condos that went under contract last month (66) far exceeded the number of condo listings that entered the market (40).
Condo sales
Dane County condo sales decreased from the previous two Decembers, but were actually quite strong compared to most other Decembers dating back to the year 2000.
Expired listings
Expired listings continued to trend along historically low levels in the month of December.
Days on Market
Days on market increased slightly from the days on market in December of 2021, but in the big picture, marketing times remained very low when compare to every other December dating back to the year 2000.
Where will the Madison area condominium market go from here?
As we look at all of our local market data from all of the different angles, we're anticipating 2023 will be another year of strong prices and limited supply. And we're firm believers that buying a Dane County condo will continue to be a great long-term investment.
If you're considering buying or selling in 2023, you're likely to have questions. So we encourage you to please contact our realtor team anytime you would like some professional guidance. We'll give you all the time you need and talk about how you can succeed in our always evolving market.
