Back Home2020 Year End Housing Statistics
February 5th, 2021 by keithandkinsey
2020 was an interesting year for real estate with the Covid-19 pandemic. It started out with a slower than normal March through May due to uncertainty about the future and shutdowns. This resulted in a reduction of the number of homes closed from from April to June. However, Wisconsin real estate finished the year strong with a record number of sales in July through December, resulting in a 7.4% increase in sales statewide and a 7.8% increase in Dane County home sales.
In Madison, sales were up 5.2%. We noticed a trend that some of the cheaper suburban markets one or two layers out of the city exploded as buyers sought more affordable homes. For example, Belleville and Westport sales were up an astounding 60.4% and 52.8% respectively followed by Oregon and Sun Prairie.
Prices were also strong across Wisconsin with a huge 11.4% increase in median prices statewide, a 6.1% increase in Dane County and a 7.0% increase in Madison. The combination of great interest rates and demand in areas with more affordable homes drove up median prices in suburban and rural communities more significantly. The front runners locally were Mount Horeb, with a 14.4% increase in median price, followed by Winsor at 13.6% and Belleville at 13.5%.
While sales and prices are up, the number of listings are down, and this is giving us insanely low levels of inventory. We’ve seen most homes that are priced appropriately sell for above asking price within days. This is making the market an extreme challenge for buyers, especially those in the under $350,000 price range in the Madison area. Above $500,000 there’s a bit more inventory, but sales are still solid.
In summary, if you are a seller, 2021 is looking like a great time to sell! If you are a buyer expect continued competition. However, with interest rates at record lows, affordability continues to be reasonable, so I wouldn’t let the competition prevent you from buying.
