What's in store for the 2026 Dane County home and condo markets? Here's our forecast for the year ahead. 

1) Madison area home supply will increase by 10 percent. Condo supply will grow by 20 percent. Inventory levels have been steadily improving over the last two years, especially in the condo market. With the growth in inventory moderating in recent months, we expect supply levels in 2026 to increase at a moderate pace, too. 

2) Thirty year mortgage rates will trend in the low to mid 6 percent range, well below where they were last year. This is consistent with recent forecasts by both Fannie Mae and the Mortgage Bankers Association. Assuming these projections hold up, we do expect more buyers and sellers to be entering the market in 2026. 

3) Home and condo sales will increase 5 to 10 percent. We anticipate improved supply and lower mortgage rates will spur more market activity in the year ahead. More homeowners, who are currently locked into a low mortgage rate, will decide it's time to sell and move forward with their next stage of life. 

4) The market will continue to trend toward more balance. Competing offers will continue to edge lower. Days on market will continue to edge higher. Buyers and sellers will be operating on a more level playing field, with more offers including the traditional home inspection and home appraisal contingencies. 

5)  Madison area home prices will increase 3 to 5 percent, condo prices 2 to 4 percent. When we consider all of the above trends together, we see local home and condo prices rising at a moderate pace in 2026. 

What questions do you have about the market and your real estate aspirations in 2026? We're always available for a helpful consultation, and never with any sales pressure or spin.