Buyer’s Market Vs Seller’s Market – Inventory Around Dane County

Think back to your high school economics class about supply and demand. A buyer’s market is when there are more sellers than buyers, in other words there is a larger supply of homes for sale than there are buyers for those homes. This results in good deals for buyers, and more time to be choosy. A seller’s market is the opposite, there are more buyers than sellers, resulting in better sales prices and quicker sales for sellers. Since it’s all based on the available supply of housing, we generally use the following rules of thumb to define a market; 0-4 months of inventory is a seller’s market, 5-7 months is a balanced market, and 8-12+ months is a buyer’s market. We are still in a solid Seller’s market.



Here’s a list of month’s of inventory for the Madison area:


Months of Inventory

Dane County 1.9
Fitchburg 1.9
Madison 0.7
McFarland 1.2
Middleton 2.1
Monona 0.5
Mount Horeb 2.6
Oregon 1.9
Sun Prairie 1.5
Verona 1.4
Waunakee 2.2

Since I checked these stats for the local newspaper in February, inventory in all areas except Verona and Monona are up slightly. If your a buyer shopping in Verona or Monona, sorry your inventory has actually dropped. For buyers in the rest of the Madison area, this is good news. We expect inventory to increase as we approach spring, but the number of active buyers generally increases this time of year also. There will likely continue to be competing offers for properly priced homes in the throughout Dane County, and the market is likely to stay more favorable to sellers thru the summer selling season.

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