Dane County Housing Market Update – January 2026

The Dane County housing market began 2026 with steady activity, rising home prices, and slightly longer timelines for buyers and sellers. Despite mortgage rates remaining elevated, demand across single-family homes, condos, and multi-family properties continues to support a healthy and competitive market throughout the county.

Home values saw a notable increase compared to last year. In January 2026, the average sale price in Dane County reached $513,362, up from $473,846 in January 2025. This year-over-year growth highlights the continued strength of the local market and the ongoing equity gains many homeowners are experiencing, even as affordability challenges persist for buyers.

While prices increased, the number of homes sold declined modestly. A total of 297 properties closed in January 2026 compared to 320 during the same month last year. This shift reflects buyer caution driven largely by interest rates rather than a lack of demand. Well-qualified and motivated buyers remain active, but many are taking a more thoughtful and strategic approach before making offers.

Homes are also taking slightly longer to sell. The average days on market increased to 51 days in January 2026, up from 46 days in January 2025. This change underscores the importance of accurate pricing, strong presentation, and effective marketing. Sellers who prepare their homes well and align with current market conditions are still seeing successful outcomes.

New listings declined year over year, with 560 homes coming to market in January 2026 compared to 600 in January 2025. This reduction in new inventory continues to help support home values and limits excessive supply, even as buyers enjoy more time and flexibility during the decision-making process.

Mortgage rates remain a key factor influencing the market, with the national average 30-year fixed rate hovering around 6.00 percent. While higher rates have slowed some activity, they have also reduced competition and created opportunities for buyers who are prepared, well-informed, and working with experienced professionals.

Overall, the January 2026 Dane County housing market reflects balance and resilience. Sellers continue to benefit from strong pricing, while buyers gain leverage through increased days on market and fewer bidding wars. At The Huemmer Home Team, we monitor these trends closely to help our clients navigate the market with confidence and clarity. Whether you’re considering buying, selling, or simply staying informed, understanding these monthly shifts is key to making smart real estate decisions in Dane County.

The Huemmer Home Team
LPT Realty
theteam@thhtrealty.com
608-279-5424 (call or text)