Condo sellers continued to cash in on historically high prices in the month of June. At the same time, we’re seeing clear signs of a mellowing market. Here’s our latest Dane County condo market report — covering the month of June, 2022.
June Dane County condo prices
The price per square foot increased by 7% in the month of June and by 8% year-to-date. Compared to June of 2020, the June price per square foot was up by a whopping 30 percent. To put this in perspective: if you purchased a condo for $200,000 just two years ago, you same condo is now worth approximately $260,000.
Condo inventory as of July 22nd
As of July 22nd, 156 condominiums were available for sale — without an accepted offer — in Dane County. Although inventory is still low, it is clearly on the rise this summer. Supply has risen by more than 80 percent since bottoming out in February.
Signed contracts in the month of June decreased by 11% year-over-year and were lower by 13% year-to-date. Higher interest rates have slowed buyer demand, which is helping to increase inventory and bring more balance into the Madison area condo market.
New condo listings
New MLS listings continued to enter the market at a slow pace in the month of June, decreasing by 14% year-over-year and by 9% year-to-date. Through the first 6 months of the year, listings are entering the market at the slowest pace since 2002. A perpetual, low supply of incoming listings will help to maintain strong prices in the months and years ahead.
Madison area condo sales decreased by 8% year-over-year and were the lowest for any month of June in the last 10 years. Year-to-date condo sales were lower by 11 percent.
Days on market
Days on market continued to trend along historically low levels, but we fully expect marketing times to increase throughout the year as inventory continues to rise.
What does the future hold for the Madison area condo market?
For the rest of 2022, we’ll see much more balance compared to the frenzied market over the last 2 years. Which means buyers will enjoy better selection, moderating prices, and more time. More time to view properties, more time to ask questions, and more time to negotiate.
Sellers, on the other hand, will need to adjust their expectations for a moderating market. Consulting with a real estate professional is a great first step for anyone who’s contemplating a sale in the weeks and months ahead.