February 2022 - Dane County Housing Market Update

Dane County Housing Market Update - February 2022

What's happening in our Dane County real estate market?

I get asked this question all the time. I also get asked if we're going to see a crash or if we're in a bubble and what people should do with their home? Is now a good time to sell? Should I be buying?

It can be really confusing, with the constant changes in the market and stories that you hear, to know what's best for you and your family. That's why we are here to help walk you through the process and see exactly what's going on in our local market.

Let's dive into the numbers. First of all, anytime you have less than six months of inventory it's called a seller's market. Think of it like a gas tank. If you have your gas tank halfway, that would be six months in a balanced market. If the tank is all the way full, you would have a buyer's market and that would be more than six months of inventory. If the tank is all the way empty, we're sitting in a seller's market, at zero months of inventory.

Right now, we are on empty and definitely in a seller's market. Not only are we down to a few months of inventory, in some micro markets we are within weeks of running out of properties to sell.

So is it a good time to sell here in Dane County? At the time of this video, we have 470 homes available in Dane County. Meanwhile, we are having an absorption rate of 561 homes per month. That means we are selling more homes per month than are currently available on the market. Overall in Dane County we have a 0.84-month supply of inventory. This is a very, very strong seller's market. In fact, if nobody else listed their house, Dane County would run out of homes for sale within 25 days. That is crazy. So yes, it's a great time to sell your home.

We are consistently seeing great prices, excellent terms, bidding wars, competition - but sellers, don't be fooled by cheap promises and big ideas. The sellers that are really hitting the jackpot are not cutting corners. They are not taking the cheap way out. The sellers that are really doing a great job in this market are taking all the steps to make sure that their home looks fantastic as soon as it hits the market and they're working with a top level realtor who's going to digitally market their house, get it out there in front of the largest number of home buyers possible, looking as great as it possibly can.

So if it's such a hot seller's market, should buyers wait for a crash or a bubble to burst? Well, in short, you could, but it's probably not the best financial decision. It all depends on your motivations. The market has a long way to go before that balance actually happens or before we dip into a buyer's market. Until the market shifts, I would expect that people that get into homes today will see a significant impact in the high level of equity that they will grow in their home between now and the time of that market shift. Meaning, if they want to become home buyers again, they will have much more available cash and equity in their home than people that sit around renting, waiting to buy a house when that market finally shifts.

The key for buyers who want to win in today's market is to connect with a realtor and a lender who have the strategies, tools and relationships to get the job done in a competitive market.

To stay on top of the changing market and get updates with new tips and new listings, make sure you follow us on socials and subscribe on YouTube. Let's talk soon.