Dane County December 2025 Real Estate Market Update | John Reuter - Integrity Homes

by John Reuter

John Reuter reviewing Dane County real estate market data for December 2025 on a large screen.

John Reuter reviewing the latest Dane County housing trends for the December 2025 market update.

Quick Answer: What's Going On in Dane County Right Now?

As of December 2025, Dane County is still a seller-leaning market with median sale price around $459,900, 1.87 months of supply, and homes selling in a median of 16 days.

The biggest pressure point is inventory—we're not in the 2021–2022 frenzy anymore, but we're also nowhere near a true buyer's market. Buyers have a bit more time and leverage on repairs, but well-priced homes, especially between $300K–$500K, are still moving quickly.

The wild card for 2026 is mortgage rates. If they move into the low 6s or high 5s, we're likely to see a demand surge and more upward pressure on prices.

📺 Watch the Full Market Breakdown

🎥 Watch on YouTube →

📊 Dane County Market Overview

As of December 1, 2025, the Dane County housing market remains one of the strongest in Wisconsin. Sales volume has cooled from the peak years, but prices continue to rise and homes are still selling quickly. We're in a more normal, data-driven market now—not the pandemic frenzy, but definitely not a buyer's market either.

November Median Sale Price
$459,900
+4.5% YoY
Average Sale Price
$510,167
+5.0% YoY
Average Price per Sq Ft
$249
+0.6% YoY
Median Days on Market
16 days
+2 days YoY
Months of Supply
1.87
Firm Seller's Market
Active Listings
980
Tight but Improving Inventory

With just under 2 months of supply, Dane County continues to favor sellers. The big difference from a few years ago? Buyers have a bit more time to think and negotiate, and sellers need a smart pricing and prep strategy—but the overall market is still very healthy.

🏠 November 2025 Snapshot

November brought fewer sales than last year but stronger prices. This is the theme for 2025 across Dane County: less volume, more value.

Closed Sales (November)
436
-15.2% YoY
Total November Volume
$222.4M
-11.0% YoY
Sale-to-List Ratio
98.98%
Homes Selling Just Under Asking

The fact that prices are up while sales counts are down tells us two things: (1) the buyers who are in the market are serious, and (2) inventory is still low enough to support price growth, even with higher rates.

💰 Buyer Demand by Price Range

Buyer demand in Dane County leans heavily toward the middle of the market. Homes between $300,000 and $600,000 see the fastest turnover and the most competition.

Price Range Share of Sales* Median Days on Market Avg % to List Price
$0 – $199K Low 19+ days Below Asking
$200K – $299K Strong 14 days -0.9%
$300K – $399K Very Strong 11 days -0.7%
$400K – $499K Very Strong 14 days -0.6%
$500K – $599K Strong 15 days -0.3%
$600K+ Growing 15–21 days Slightly Below Asking

*Based on recent Dane County sales distribution across all price ranges.

The sweet spot is still that $300K–$500K range: quick sales, strong demand, and minimal discounting from list price. Higher-end properties are seeing slightly longer days on market and more negotiation, but pricing remains stable.

🧭 Long-Term Appreciation in Dane County

Over the past decade, Dane County has been one of Wisconsin's most consistent appreciation stories. The median sale price has climbed from $264,000 in 2017 to $451,000 in 2025 year-to-date—a gain of roughly 71%.

Why Dane County Continues to Outperform

  • Diverse Job Base: State government, healthcare, tech, education, and biotech around Madison.
  • Top-Ranked Schools: Madison, Middleton, Verona, Waunakee, DeForest, Sun Prairie and more.
  • Quality of Life: Lakes, parks, bike trails, and tight-knit communities.
  • Limited Buildable Land: Zoning, lakes, and demand keep supply tight.

With inventory still under two months and steady in-migration to Dane County, the long-term investment thesis remains strong for both owner-occupants and investors.

🌎 National Market Context & What It Means for Dane County

Zooming out, the U.S. housing market is finishing 2025 in a "stuck but stabilizing" mode. Mortgage rates have averaged around 6.6% this year, keeping national sales volumes below pre-pandemic levels, but economists expect a gentle reset in 2026 rather than a crash.

  • Most national forecasts are calling for a small uptick in existing home sales and modest price growth in 2026 as rates edge lower.
  • Many markets are seeing buyers prioritize affordability, energy efficiency, and location over pure size.
  • Inventory is slowly improving nationally, but still tight enough in many metros to support prices.

For Dane County homeowners and buyers, this national backdrop matters—but our local fundamentals are stronger than the U.S. average. We came into this cycle with tighter inventory, higher incomes, and steady demand, so we're well positioned to benefit if rates trend lower.

📣 John's Bottom Line for 2026

Here's my honest read of where this goes next: if mortgage rates move down into the low 6s or high 5s, we're going to see a heavy increase in demand across Dane County.

There's a huge group of people sitting on the sidelines right now: renters who are sick of rent hikes, move-up buyers who didn't want to give up their 3% rate, and first-time buyers who were priced out when rates spiked. The second monthly payments drop even a little, that group comes back.

My Forecast (If Rates Drop as Expected)

  • Expect a demand surge as renters and move-up buyers re-enter the market.
  • With inventory still under two months, that extra demand has only one place to go: prices.
  • I wouldn't be surprised to see 5–8% price growth in 2026 in many parts of Dane County if rates break meaningfully lower.
  • If you can buy now, you're buying before the floodgates open—and you can always refinance the rate later.

You can refinance a mortgage. You can't refinance the price you paid for the house. If the numbers work today, waiting often just means competing with more people tomorrow.

🕰️ Strategic Insights for Dane County Buyers & Sellers

For Home Buyers

Late 2025 and early 2026 may be the last "calmer" window before demand jumps again. Right now you still have:

  • More time to make decisions than in 2021–2022.
  • Room to negotiate repairs, credits, and contingencies.
  • Less competition in many price ranges, especially above $600K.
  • The ability to buy now and refinance later if/when rates drop.

For Home Sellers

Don't let the headlines fool you: this is still a seller-advantaged market in Dane County.

  • Median days on market is just 16 days.
  • Months of supply under 2.0 keeps leverage on your side.
  • Well-prepped homes in the $300K–$500K range can still see multiple offers.
  • Higher-end listings above $700K benefit from strong marketing, staging, and patient, strategic pricing.

The key is presentation + pricing. Clean, staged, and photo-ready homes—priced correctly from day one—are the ones winning in this market.

🔍 Key Dane County Takeaways

  • Prices remain strong: November median up 4.5% YoY.
  • Seller's market persists: 1.87 months of supply keeps leverage with sellers.
  • Middle price ranges are hottest: $300K–$500K homes move fastest.
  • Volume is down, not values: fewer sales, higher prices.
  • Demand surge likely if rates fall: potential for 5–8% appreciation in 2026.
  • Now is a strategy market: the right plan matters more than ever for both buyers and sellers.

🗺️ Dive Deeper Into Dane County Communities

Dane County isn't just one market — it's a collection of hyper-local sub-markets that all behave a little differently. Madison, Sun Prairie, Verona, Middleton, Waunakee, DeForest/Windsor and other communities each have their own pricing, inventory levels, and buyer demand patterns.

If you want to see how your specific area stacks up, I've put together a running breakdown of the largest Dane County markets, updated regularly with local stats and commentary.

👉 View the full community-by-community breakdown here:
https://integrityhomeswi.com/market-reports/dane-county-wisconsin/

❓ Dane County Real Estate FAQs

Quick answers to the questions I'm getting most often right now about the Dane County housing market.

What is the median home price in Dane County right now? +

As of December 1, 2025, the Dane County median sale price is $451,000 year-to-date, with a $459,900 median in November alone. Both are higher than last year, reflecting steady price growth across the county.

Is Dane County a buyer's market or a seller's market? +

Dane County is still a seller's market. Months of supply is under 2.0, and well-prepared homes continue to sell in about 2–3 weeks. Buyers have more breathing room than in 2021–2022, but sellers still hold the advantage overall.

Should I wait for rates to drop before I buy? +

That depends on your situation, but here's my take: if rates drop, demand will almost certainly spike, and prices will likely move higher. Buying now means less competition and the ability to refinance later. Waiting means gambling on both rates and prices.

Is winter a bad time to sell in Dane County? +

Not at all. Winter buyers tend to be more serious and motivated, and you face less competition from other listings. With low inventory, a clean and well-priced home can still sell quickly in January or February.

I'm a veteran / first responder / medical professional. Do I get any extra help? +

Yes. Through our Reward Our Heroes™ Foundation, qualifying buyers and sellers (veterans, active-duty military, police, fire, EMS, healthcare workers, and teachers) can access savings, support, and education tailored to your situation. Visit RewardOurHeroes.com or reach out to me directly to learn more.

✍️ About the Author

John Reuter is a U.S. Air Force veteran, full-time Realtor, and Broker/Team Leader of Integrity Homes of Wisconsin, brokered by Real Broker, LLC. Based in Dane County, John has spent the last decade helping buyers and sellers navigate the housing markets in Madison, Sun Prairie, Verona, Waunakee, Middleton, DeForest/Windsor, and surrounding communities with a calm, data-driven approach.

John is also the Founder and Executive Director of the Reward Our Heroes™ Foundation, a Wisconsin nonprofit dedicated to providing savings, scholarships, and support for local heroes—including veterans, active-duty military, law enforcement, firefighters, EMS, healthcare workers, and teachers.

When he's not analyzing market stats or negotiating contracts, you'll usually find John volunteering in the community, supporting veteran and first responder events, or talking someone through their first home purchase over coffee. Learn more about John at integrityhomeswi.com/about.

Ready to Talk Strategy for Dane County?

Whether you're thinking about buying, selling, or just want a no-pressure market check-in, I'm happy to walk you through the numbers and options.

📞 Call: (608) 669-4226 💬 Text: (608) 669-4226

John Reuter | Integrity Homes Wisconsin | Reward Our Heroes™
Serving Madison, Sun Prairie, Verona, Waunakee, Middleton, DeForest, and all of Dane County

Disclaimer: Market data compiled from SCWMLS and local analysis. Statistics represent trends and averages; individual property results will vary. All information deemed reliable but not guaranteed. Always consult with a licensed real estate professional and your lender for advice specific to your situation.

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