Here's an interesting graphic that provides a good illustration of how the Dane County real estate market has changed over time. The purple line (using the left axis) represents the combined home and condo inventory at the end of each month dating back to January of 2005. The blue line (using the right axis) represents the number of homes and condos sold each month.
Note how inventory grew steadily from the beginning of 2005 and peaked in the summer of 2007. Although this year's inventory levels are lower than the inventory levels from 2007, Dane County still has over twice as many homes and condos on the market as it did in January, 2005.
Meanwhile, the number of monthly sold listings has decreased over the past three years (note how the data peaks trend lower from year-to-year, as do the troughs).
The shift toward lower levels of inventory represents a positive change for Dane County sellers, but levels will need to drop further before sellers start to gain some leverage. Expect Dane County inventory levels to remain high until the sales pace picks up for homes and condos. Until that time, sellers will need to continue to compete aggressively for their sales.
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