Why Are Homes Taking So Long To Sell In Madison, WI?

Inventory is increasing. Listings are expiring. Buyers keep looking and looking and looking. Will your home ever sell?

The truth is even great homes are not selling right now in this market, as quickly as they once did. The days on market has been hovering at around 90-105 for the last 6 months or so in Dane County. Currently a listing on the east side of Madison is selling at an average of 95 days on market. The west side of Madison is 101. A little over three months.

Not bad, but it probably doesn’t feel that way though, considering you saw your neighbor’s across the street put up their house for sale and a SOLD sign was on it 10 days later, 18 months ago.
The market is different though. It is simple Supply and Demand.PLY & DEMAND.

P – price
Q – quantity of good
S – supply
D – demand

The price of a product is determined by a balance between production at each price (supply) and the desires of those with  at each price (demand). The graph depicts an increase in demand from D1 to D2, along with a consequent increase in price and quantity sold of the product.

The intersection of supply and demand determines equilibrium price and quantity.

So if a Realtor has not told you yet Mr. and Mrs. Seller, your home is a product. A product where there is surplus right now. How much surplus?

 

In 2003 Dane County ended with 2,002 listings in inventory.

2004 was 2540.

2005 was 4013.

2006 ended with 5211 listings in inventory.

That’s a lot of supply!

The thing is, there is still a lot of demand. Just not as insane as it was.

Make sure you have a great Realtor that understands the market, how to market and where to market. If your home is priced right, it should sell in a little over 3 months. Plan accordingly and make sure you are in constant communication with your listing agent.

Tags: Dane County Madison real estate