Dane County Real Estate 2025: Signs of Balance Returning

Entering 2024, our local market was filled with hope following a challenging 2023 that delivered the fewest home sales since the Great Recession. As we move into 2025, that hope has begun to materialize into tangible improvements. Our 2024 total of just over 6,300 home sales marked a 7% increase from 2023, though we're still well below the transaction volumes our market traditionally experiences—we would feel much more comfortable seeing annual sales surpass 8,000.

The real story of 2024 was the steady recovery in inventory. After 5 straight years where available homes rarely topped 600 units, we closed 2024 with over 700 homes on the market. While this represents progress, we still have a ways to go. Prior to COVID, our market typically saw year-end active listings exceed 1,000 homes. New listings increased to over 7,300 properties, up significantly from 2023's historic low of 6,279. While encouraging, we're still short of the roughly 9,000 annual listings that historically represented a more balanced market.

The mortgage rate environment found stability in 2024, with rates expected to hover around 6.5% throughout 2025. September 2024 even saw rates briefly dip below 6%, triggering an immediate surge in buyer activity. While the 3% rates of 2021 aren't coming back, this newfound predictability gives both buyers and sellers the confidence to make moves in the market.

Home values continue to demonstrate remarkable resilience, with the median price reaching $440,000—a 7% annual increase. Since 2000, our market has only seen price declines in four years (2008-2009, 2011-2012), with average annual appreciation of 6.3% otherwise. Unlike the pre-2008 period when new listings topped 13,000 annually, today's inventory levels suggest price stability rather than decline. Looking ahead, expect continued appreciation in 2025, but at a more sustainable pace as our market steadily trends toward more traditional conditions.

Advice for Home Sellers

For the coming months, we anticipate a seasonal uptick in buyer competition and aggressive offers, making it an exciting and potentially lucrative time for home sellers. While this market enthusiasm is encouraging, here's a crucial truth: timing alone won't maximize your home's value.

We’ve said it before and we’ll say it again—truly capitalizing on market conditions isn’t just about getting a good offer; it’s about getting the best offer. And to achieve that, there’s no room for cutting corners.

If you’re considering a move in 2025 here are five key steps to ensure you get the best possible offer for your home:

1. Start the Conversation Early

Don't wait until you're ready to list to contact your Minter Team agent. Early planning allows us to identify potential challenges, strategize improvements, and create a comprehensive marketing plan. In many cases, we can even begin generating a buzz surrounding your property before it officially hits the market, building excitement among serious buyers who are actively searching in your area.

2. Make Strategic Improvements

Small investments often yield significant returns. Our goal is to make potential buyers fall in love with your home before it hits the market, but it’s your job to make sure they confirm that feeling when they walk through the door. Fresh paint and carpeting can go a long way towards giving your home a clean and well-maintained feel while typically showing a solid return on your investment. Consider a pre-inspection to identify small repairs you can get ahead of, eliminate surprises after an accepted offer, and increase buyer confidence so they can make stronger offers.

3. Embrace Professional Staging

When buyers walk through your door, they need to envision their future, not see your present. Professional staging isn't just about making your home look pretty - it's about strategic presentation that appeals to your target buyer. Whether it's rearranging furniture, decluttering spaces, or adding key decorative elements, proper staging can dramatically impact buyer perception and offer amounts. Remember, how you live in your home is not how you should sell your home. So while an arrangement may make perfect sense for day to day living stay open to the professionals advice regarding the best way to display your home to potential buyers.

4. Price It Right

Today's buyers are well-informed and quick to dismiss homes they perceive as overpriced. Strategic pricing creates competition, and competition drives up offers. Remember, you're not just looking for a good offer - you're looking for the best offer.

5. Trust the Process

Preparing your home for sale can feel overwhelming. That's why partnering with an experienced team matters. We'll guide you through each step, from initial planning to final closing, ensuring no opportunity is missed along the way.

The spring market is coming, and with it comes great potential for sellers. But the ones who will truly maximize their returns aren't just riding the market wave - they're actively preparing to make the biggest splash possible.

Advice for Home Buyers

This time of year brings a unique dynamic to the housing market. As January arrives, determined buyers declare, "This is the year I'm going to buy a home!" Meanwhile, many sellers prefer to wait for spring or summer, when their properties show better with green lawns and warmer weather.

This timing creates an interesting market imbalance – buyer enthusiasm peaks well before seller activity ramps up. While historically, fall has offered the best buying opportunities with less competition and motivated sellers, that window has passed and now we’re heading into the fast-paced frenzy of the spring market.

If you're committed to purchasing a home this year, here's how to position yourself for success:

1. Lay the Groundwork Early

Don't wait until you spot your dream home to start preparing. Begin by connecting with your Minter Team agent to develop a customized strategy that aligns with your goals and current market conditions. Next secure a strong preapproval from a respected lender – this isn't just a task on your to-do list, it's a powerful tool that can make your offers stand out to sellers.

2. Move Quickly

The spring market moves fast. If you see a home on Friday, you may need to write an offer by Saturday morning. While this speed can feel daunting, indecision often leads to missed opportunities. When actively house hunting, keep your schedule flexible and don't count on open houses – the most desirable properties often sell before then.

3. Leverage Your Agent's Expertise

Success in today's market demands strategic thinking. Your agent brings proven experience in crafting winning offers, whether that means offering over asking price, adjusting contingencies, or using creating offer clauses agents active in today’s market understand the nuances of what it takes to get the job done. While these decisions can be challenging, trust your agent's guidance to help secure your desired home.

4. Be Prepared to Be Uncomfortable

Every home purchase involves moments of uncertainty. You might feel anxious about your offer price, tense during inspection negotiations, or regretful after missing out on a property. Acknowledging these emotions upfront helps make the journey more manageable.

5. Keep the Big Picture in Mind

Most home purchases stem from necessity – whether it's a job change, growing family, lease ending, or other life transition. Understanding your core motivation helps maintain perspective during challenging moments. Remember, delaying your purchase could cost more in the long run. In Dane County, median home prices have typically jumped around $30,000 between March and June, with average annual appreciation near 8.5% over each of the last five years.  While today's price or offer concessions might stretch your comfort zone, market appreciation often brings properties to fair value relatively quickly.