Madison WI Condo Market Trends: Nov 2018
This report provides objective information on the latest condo market trends in Madison, Wisconsin. The city of Madison represents the largest market in South Central Wisconsin, and serves as a good indicator for the market across all of Dane County. All of our statistics are compiled from the South Central Wisconsin Multiple Listing Service (MLS). Unless noted otherwise, all of the statistics below are updated through November, 2018.
Madison WI Condo Market Summary - Nov, 2018
- Madison condo sales are strong but also limited due to scarce supply in the open market.
- Accepted offers have essentially plateaued due to a lack of inventory for sale.
- Expired listings increased in November but remained the lowest on record year-to-date.
- The Madison condo listing expiration rate was the lowest ever through the month of November.
- New condo listings were up in November but remained low by historical standards. Lower listing activity is limiting the supply of available condos and contributing to the rise in local condo prices.
- As of 12/12/18, only 1.4 months of supply are available for sale in the local condo market. This low level of condo inventory indicates a good sellers' market, especially for condominiums priced below $300,000.
- Condo days on market through the month of October were the lowest on record.
- Madison condo prices are higher through the month of November. The price per square foot is up 5% from 2018. The average price is up by 5 percent, too.
- Competing offers dipped in October but remained even year-to-date.
- In 2018, 21% of Madison condo sales went to cash buyers through the month of November - up from 20% last year. Cash offers are most common for condos priced above $250,000. Many down-sizing Baby Boomers have the means to pay cash for a higher-priced condominium.
Madison WI Condo Sales - November, 2018
A total of 70 Madison condos sold via the MLS in the month of November, which was the fourth highest November total on record. Sales would be even higher if more supply was available in the market.
Year-to-date through November, a total of 989 Madison condo listings sold via the MLS. As the graph below shows, condo sales have essentially plateaued in Madison.
On an annual basis, a total of 1,044 Madison condo listings sold in 2017, a decease from the 1,093 listings sold in 2016.
Madison Condo Sales: January, 2000 - November, 2018
This table shows the monthly, year-to-date and annual sold Madison condo listings for every time period dating back to January, 2000.
Madison Condo Accepted Offers - November, 2018
Accepted offers (or pending condo sales) provide an indication of the number of closings that can be expected in the months ahead. A total of 58 Madison condo listings received accepted offers in the month of November. This was the third highest total on record for the month of November.
A total of 1,000 Madison condos received accepted offers year-to-date through the month of November. Accepted offers would be higher if more supply was available for sale.
A total of 1,022 Madison condo listings received accepted offers in 2017.
This graph shows Madison condo accepted offers by week in 2017. As the graph below shows, accepted offer activity peaks in the Spring and troughs in the month of December. This is an important graph for sellers to understand prior to listing their condo for sale.
This graph shows accepted offer activity by month.
Madison Condo Accepted Offers: January, 2000 - Nov, 2018
The table below shows the monthly, year-to-date and annual Madison condo accepted offer totals for each time period dating back to January, 2000.
Madison Expired Condo Listings - Nov, 2018
A listing "expires" when it does not sell by the end date specified in the listing contract. A large number of expired listings indicates a strong buyers' market. A low number of expired listings indicates a strong sellers' market.
Expired listings are beginning to edge higher but still trending near historically low levels. A total of 26 Madison condo listings expired in the month of November.
A total of 81 Madison condo listings expired year-to-date through the month of November, which was the lowest on record.
A total of 153 Madison condo listings expired without selling in 2017. This represents the second lowest expired listing total on record.
Madison Expired Condo Listings: January, 2000 - Nov, 2018
This table shows the monthly, year-to-date and annual expired condo totals for each time period dating back to January, 2000. The green data points show expired listings have been trending along a downward path since 2009. Expired Madison condo listings decreased every month in 2016 and were up and down in 2017. Expired listings have increased in the last two months but are still on pace to reach new record lows in 2018.
Madison Condo Listing Expiration Rate - Nov, 2018
The Madison condo listing expiration rate is trending along historically low levels. The expiration rate in the month of November was 27%.
The year-to-date condo expiration rate through the month of November was 8% - the lowest percentage on record.
The annual condo listing expiration rate in 2017 was 13%. This was the second lowest annual rate on record.
Madison Condo Listing Expiration Rate: January, 2000 - Nov, 2018
This table shows the monthly, year-to-date and annual condo listing expiration rate for every time period dating back to January, 2000. As the green data points show, expiration rates have been trending lower on a year-over-year basis since the summer of 2011. The month of January, 2017 was an aberration due to the large number of Weston Place condos all expiring on January 1st.
Madison Condo New Listings - November, 2018
The number of new listings entering the Madison condo market increased in November. A total of 59 condo listings entered the market - up from the 44 listings in November of 2017.
Year-to-date, a total of 1,100 new listings entered the Madison condo market through the month of November. As the graph below shows, the number of new listings entering the condo market has moderated since the housing bubble hit in 2008.
A total of 1,067 new listings entered the Madison condo market in 2018. This was a low level by historical standards.
The graph below shows the number of new Madison condo listings by week for the 2017 calendar year.
Madison Condo New Listings: January, 2000 - November, 2018
This table shows the number of new Madison condo listings by month dating back to January, 2000. A green data point indicates an increase in new listings. A red data point indicates a decrease. New listings decreased 9 of 12 months in 2017, and are up by only 6% in 2018.
Madison WI Condo Inventory as of 12/12/18
This table offers an excellent snapshot of our local condo market. The price ranges highlighted in yellow indicate segments of the market that are particularly favorable to sellers. Taking accepted offers into account, all of the price ranges under $300,000 have less than 1.7 months of available supply (refer to the column on the far right). Overall, 30% of all Madison condo listings have an accepted offer. Across all price ranges, there are only 1.4 months of inventory available in the Madison condo market as of December 12th, 2018. Note, months of inventory do vary by price range.
This graph shows Madison condo supply dating back to July of 2015. Inventory levels are currently at 1.4 months of supply, which is above the 1.3 months from December of 2017.
This graph shows how active condo listings have changed from November of 2015 to November of 2018. Active condo listings have increased by 4% from December of 2017 but have decreased by 40% since December of 2015.
This graph shows the percent of Madison condo listings with accepted offers dating back to October, 2015. Each bar on the graph represent a snapshot of the market taken mid-month. In December of 2018, 30% of all Madison condo listings had an accepted offer, compared to 34% in December of 2017. Note how the percentage of listings with accepted offers is typically highest in the spring and early summer months.
Madison WI Condos - Days on Market - Nov, 2018
How long does it take to sell a condo in Madison? The days on market statistic is represented by the number of days that pass from the listing start date to the listing accepted offer date. Days on market for Madison condos are trending along historically low levels. The average for the month of November was 28 days. This was the lowest on record for the month of November.
Year-to-date, the average Madison condo days on market through the month of November was only 37 days.
The average condo days on market for all of 2017 was only 40 days. This annual average was the lowest on record.
Madison Condo Days on Market: January, 2000 - Nov, 2018
This table shows the average condo days on market by month dating back to January, 2000. As the green data points show, the days on market for Madison condos have been trending much lower since 2014.
Madison WI Condo Prices - November, 2018
Our best measure of condo value is the price per square foot. In 2017, the average Madison condo price per square foot increased for the fifth straight year. Condo prices bottomed out in 2012 and began to rise again with increasing demand and falling supply. The graph below shows the average price per square foot for every year dating back to the year 2000. Madison condo prices in 2017 were the highest on record. We expect the price per square foot to continue rising in 2018 based on current condo market dynamics.
The average price per square foot in the month of November was $153. This was the second highest price total on record.
Year-to-date through November, the average price per square foot was $164. This was up 5% from the year-to-date price in November of 2017.
Historical Madison Condo Prices through November, 2018
This table shows the percent change in the price per square foot for every time period dating back to January, 2000. The price per square foot increased by 10% in 2017, and is on pace to rise substantially again in 2018.
Madison Average Condo Price - November, 2018
The average Madison condo price in the month of November was $218,942 - which was the fourth highest on record. The average condo price can fluctuate greatly from month-to-month due to the relatively low number of sales compared to the single family home market. A few high-end or low-end condo sales can have a big impact on the average price in any given month. Therefore focus on the long-term trend over placing too much emphasis on any given month.
Year-to-date, the average Madison condo price was $225,690 through the month of November. This was the highest year-to-date total on record.
The average condo price for all of 2017 was $214,796, representing a new high for the Madison condo market.
Madison Condo Prices: January, 2000 - November, 2018
This table shows the percent increase/decrease in the average condo price for every month dating back to January, 2000. The average Madison condo price is up 5% through the month of November.
Madison Condos - % with Competing Offers - October, 2018
This statistic measures the percentage of condo listings that receive multiple offers. As the graph below shows, the percentage decreased from 15% in October of 2017 to 11% in October of 2018. Multiple offers are most common in the Spring and early Summer and least common in the Fall and early Winter.
Competing Offers by Price Range: October, 2018
Which price ranges are the most competitive for condo buyers? The graph below shows the percentage of accepted offers that involve competition from multiple buyers. Overall, 30% of accepted offers in 2017 involved competition from multiple buyers, the same as in 2018.
Madison Condos - Percent of Sales with Cash Offers - Nov, 2018
Year-to-date through November, 21% of all Madison condo sales involved cash offers.
This graph shows the percent of closings with cash offers by price range - through the month of November. Typically, the higher price categories are most likely to involve a cash offer. This is due to down-sizing Baby Boomers with large savings accounts. Many buyers in this demographic have the means to pay cash for a higher priced condominium.
This last graph shows the annual percentage of Madison condo sales with cash offers - through 2017.
About the Author
Dan Miller has been studying and reporting on the Madison condo market since 2007. Please feel free to contact Dan with any questions you have about your local condo market.