It's only February 15th, but the hot Spring real estate market has officially arrived to Madison, Wisconsin. Talk to any local REALTOR and they will tell you that the competition is fierce for a limited supply of properties. Our latest market data provides some great insight into the current inventory, sales, and price trends in Madison.
The Madison single family home market
Here's a quick overview of the Madison single family home market.
Single family home inventory
Single family home supply continues to trend toward new historic lows. Right now there are only .7 months of supply available for sale on the MLS - down from .9 months at the same time last year. Active MLS listings are down 25% from a year ago, and an amazing 52% of all listings are under contract with an accepted offer. Momentum is very strong in the single family home market.
Single family home prices
As expected, Madison home prices increased in January to $147 per square foot, which was a record high and up 6% from last year.
Single family home sales
Even though inventory is historically low, Madison home sales reached the second highest total on record for the month of January. Note sales would be trending much higher if more supply was available for purchase. Right now there are many reluctant renters in Madison who are working hard to find the right home.
The Madison condo market
Here's a quick snapshot of the Madison condo market.
Right now there is only one month of condo supply available for sale on the MLS - down from 1.9 months in February of 2017. Active listings have decreased 42% from a year ago, and 39% of all listings are currently under contract with an accepted offer. Demand is very strong in the Madison condo market.
Madison condo prices were slightly below record highs in January, but keep in mind these numbers are based on a small data set. We fully expect condo prices to reach new highs as we collect more sales data in 2018.
Condo sales set a new record for the month of January, even though inventory is scarce. Similar to the single family home market, there's a large pent up demand for condominiums in Madison and throughout all of Dane County.
Inventory is tight all over
Here's a quick inventory snapshot for the 8 counties that comprise the South Central Wisconsin MLS:
- Right now there are only 1.2 months of single family home supply and 1.3 months of condo supply in all of Dane County.
- There are 2.3 months of single family home inventory in Columbia County.
- 2.8 months in Dodge County.
- 3.6 months in Grant County.
- 2 months in Green County.
- 4.4 months in Iowa County.
- 3.8 months in LaFayette County.
- 1.5 months in Rock County.
- 3.2 months in Sauk County.
As the numbers above show, inventory is tightest in the counties with the largest urban populations (Dane and Rock counties).
Advice for sellers in a low inventory market
Right now conditions are ripe for attracting multiple offers and achieving a record high price. If you're planning to sell, these two articles will help you attract competing offers and protect your listing from a low appraisal.
- Would you rather sell your home in one day or one week?
- Seven ways to protect your listing from appraisal issues.
Advice for buyers in a low inventory market
If you're planning to buy in 2018, you'll need to focus on your goal and act decisively when the right opportunity presents itself. The first 5 articles in this list will help you develop the right mindset and the right strategies for finding and buying a home in this year's market.
Dan Miller, REALTOR
Mad City Dream Homes & RE/MAX Preferred