Real Estate Rebound: Dane County Housing Market Shows Promise

MADISON, WI — With housing inventory on the rise, Dane County’s residential market is looking better for buyers than it did in early 2021, but there is a caveat: affordable listings remain scarce.

While inventory is still relatively low in Dane County, it has trended slightly upward since the beginning of 2021, according to a report from the Realtors Association of South Central Wisconsin. This is good news for buyers who were dealing with an even more drastic housing shortage a few months ago.

However, there is still a shortage of lower-priced homes in Dane County, Ruth Hackney, CEO at Realtors Association of South Central Wisconsin told Patch.

In the Madison area, Hackney said any home that at or below $400,000 is considered a lower-cost home. In comparison with other South Central counties, Dane County is far more expensive and has far fewer lower and mid-priced homes.

In Dane County, the median sales price is $365,000 — still $100,000 more expensive than the second-highest median in the region, including Columbia, Dodge and Sauk Counties.

Median prices, meanwhile, continue to increase, Hackney said, making the lack of lost-cost housing even more drastic. High-priced listings are often unattainable for people like millennials and first-time buyers.

This can also lead people to buy homes in other, neighboring counties in South Central Wisconsin, which are more affordable.

In Madison, the average homebuyer is in his or her late 30s, is white, has a bachelor's degree, is married with a child and has an annual income slightly under $100,000, according to data from the National Association of Realtors.

Data shows while over half of homes in Rock and Green Counties sold for under $200,000, only 11 percent of Dane County's sales were under that price point.

While surrounding counties have more affordable housing, the increased demand can reduce supply and increase the price.

Despite this shortage, this summer and fall are looking like a better time for buyers than early 2021.

The nationwide housing shortage is easing up, according to a study by Realtor.com. The number of homes for sale in June 2021 was still 40 percent lower than that in June 2020, but inventory is improving month-over-month.

"Although there's still a significant shortage of homes for sale, and home prices just hit a new high, our June data report shows good news on the horizon for buyers," Realtor.com Senior Economist George Ratiu said in a news release.

This trend is consistent in the Dane County housing market.

This summer, the market has more listings, which is “relieving some pressure on buyers,” according to a study from the Realtors Association of South Central Wisconsin. Although, the same report states that any listings below $200,000 remain very low in the whole region.

Hackney said that the best thing prospective buyers can do to find a home amid this national shortage is to hire a knowledgeable realtor.