Market Statistics: January-April 2021
Home Sales:
Home sales in April increased again as the summer sales market heats up. Dane County’s year over year sales are up 6.8% to 638. The full region’s sales are up almost 15% over 2020 to 1,426.
Home Prices:
The median price of homes increased in every region in South Central Wisconsin. The average was just under 11%, and Dane County increased by 13.3% to $340,000.
Inventory:
Despite the 4th month of increases in new listing inventory, the overall absorption rate for the region remains at a low 2.5 months, well below the 4-7 months that are considered a balanced market. Although also low, Dane County’s absorption rate at 2.6 months actually represents a slight increase from the end of 2020 which bottomed out at 1.6 months.
Interest Rates: April 29th, 2.98% for a 30-year fixed
In light of the rising COVID caseloads globally, U.S. Treasury yields stopped moving up a month ago and have remained within a narrow range as the market digests incoming economic data. The good news is that with rates under three percent, refinancing continues to be attractive for many borrowers who financed before 2020. But, for eager buyers, especially first-time homebuyers, inventory continues to be extremely tight and competition for available homes to purchase remains high.
What’s Ahead:
As the economy continues to open, the strong demand numbers may incentivize some citizens to sell their homes. Its still anticipated that the 50-year housing shortage is likely to remain imbalanced through 2022.
