Housing prices continue to climb in Dane County. Here’s the average price of a home today
MADISON, Wis. — The American Dream feels more and more like just that– something people can only dream about.
According to the Realtors Association of South Central Wisconsin, the average price of a home in Dane County right now is $345,000. Those who work in the housing market industry don’t expect prices to go down anytime soon.
John Thompson, President of Thompson Kane & Company, Inc., said on every home that goes up for sale, “We see multiple offers. Twenty, thirty offers per house.”
Thompson said one of the most extreme measures he’s seen a home buyer take recently was a case in Deforest where people paid close to $400,000 over the asking price without ever entering the home.
“I’ve never seen anything like it,” Thompson said. “I don’t think anybody alive today really has either.”
President of Stark Company Realtors David Stark said, “People are resorting to a lot of interesting techniques to be the winner in a bidding war.”
Stark said home buyers typically pay anywhere from 3-10% down but now, people are putting down 20-30% upfront.
“I’ve seen crazy markets. I’ve never seen this version of crazy before,” Stark said.
People are also offering up to 30% more than the high prices already listed on homes, all contributing to the fact that there’s so much demand chasing such little supply.
“The housing shortage goes all the way back to the recession of 15 years ago,” Stark said. “We were underbuilt and we’ve never been able to catch up.”
Stark and Thompson said they don’t see prices falling anytime soon. But they are focused on partnering with organizations to make homes more affordable by increasing that supply over time, which, in turn, will slow the rapid increase in home prices overall.
Until that happens, Stark suggests that first-time homebuyers sit down with a good realtor, set boundaries and live within them.”
“If a buyer wants to come in with a lower down payment, they can certainly do that,” he said. “They have to find the right lender and get a good preapproval so the seller knows they are going to have a closing.”
Stark said millennials are the biggest group of home buyers ever which is why we are seeing such high demand for homes right now. He added that the pandemic escalated the market prices. Home buyers can expect their mortgage payment to be between $1,500- $2,000 per month.
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