Late last year we published our predictions for the 2018 real estate market. So far 2018 is playing out largely as expected. Here's our quick overview of this year's predicted and actual trends.
Prediction: Madison condo prices will rise by at least 8 percent.
Actual: The average Madison condo price is up by 9 percent through the first 7 months of the year; the price per square foot is up by 7 percent.
Prediction: Madison home prices will rise by at least 5 percent.
Actual: Both the average price and the price per square foot are up by 4 percent through the first 7 months of the year.
Prediction: New home construction will remain low.
Actual: Housing starts remain low by historical standards. Building permits are up by only 2 percent from last year.
Prediction: Home and condo supply will remain historically low.
Actual: Madison currently has only 1.5 months of single family home supply.
Condo inventory is also very low. The local condo market has only 1.7 months of supply.
Prediction: Foreclosure and short sale listings will be in short supply.
Actual: Although foreclosures are increasing locally, they remain low by historical standards.
Prediction: Home and condo sales will plateau.
Actual: Madison home sales are up by only 1% through the month of July. Sales are being restrained by low supply.
Madison condo sales are lower by 2%.
Prediction: Demand for real estate will remain very strong.
Actual: There remains a large pent up demand for real estate. How do we know this? Very few listings are expiring in Madison, which is an indication of a market that has more buyers than sellers. Right now expired single family home listings are at the lowest levels on record.
Expired condo listings are at historically low levels, too.
Prediction: Income properties will be hot commodities in 2018.
Actual: Multifamily properties are in high demand. Right now there are only 2.2 months of supply in local income property market.
Our expectations for the rest of 2018
We expect the high demand/low supply market to continue throughout all of 2018; however, the fall and winter months will offer buyers some good opportunities to purchase with less competition from other buyers. Every market and every season is unique, so reach out to your favorite Mad City Dream Homes agent when you have questions about your market and your real estate goals. We're here to consult with you in 2018 and in the years ahead.
Dan Miller, REALTOR
Mad City Dream Homes & RE/MAX Preferred