The greater Madison area is seeing “significant” improvements in housing inventory as the market stabilizes, according to a local real estate executive.
Stark Company Realtors President David Stark says this spring brings “far less uncertainty” than was present in early 2023, when rising mortgage rates led to confusion among analysts about the direction of housing prices and related demand.
“This confusion carried over to buyers and sellers, who were unclear as to the direction housing as an investment would take,” he wrote in a recent newsletter. “A year later, there is far less confusion. Analysts have figured out that housing prices are not falling, and there is even some chatter in the media about housing being a source of strength for the economy.”
Home sales in the first quarter of this year weren’t changed from the same period of 2023, he noted, with sales “essentially flat” in Dane County while rising 7.7% in Sauk/Columbia counties.
But at the same time, new listings are up 15% in Dane County and 19% in Sauk/Columbia counties, while inventories have grown 28% in Dane and 67% in Sauk/Columbia, according to Stark.
“While months of inventory are still relatively low at 1.2 months in Dane County and 1.7 months in Sauk/Columbia, that’s up by 50% and 70% respectively since last year … So, while we still have a long way to go, the improvements are significant nonetheless,” he wrote.
Meanwhile, housing prices in the region continue to rise and Stark argues there’s “absolutely no evidence” that they will be falling anytime soon. Between March 2023 and March 2024, the median residential price in Dane County rose 6.44% while it rose 8.91% in Sauk/Columbia counties, according to the newsletter.
Stark also highlights an increase in over-bid sales, noting March sales in Dane County were an average of $5,605 over the list price, compared to $4,456 in March 2023.
“So far this year, the Dane County 12-month median is already up 1.24%, and we’re heading into spring when prices rise the most and overbids are the highest,” he wrote, adding prices are on pace to rise about 6% this year.
As local sellers are entering the market in greater numbers, home sales are expected to increase as long as that trend continues.
“We predicted about a 15% increase in total transactions in 2024, and we are so far on track to meet that target,” Stark wrote. “Inventories are creeping upward, leading to more choices for buyers and marginally less upward pressure on prices.”
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