Almost 10 years ago the real estate market began its infamous decline. Buyers stopped buying, and Downtown Madison suffered from a glut of vacant, unsold condos. More than 2 years of inventory sat on the market, and condo prices plunged. Over time, market conditions improved along with the overall economy. Consumers started buying again when prices became more attractive. Downtown inventory eroded until eventually all of the new construction condos sold out.
Condo Values are Rising Again in Downtown Madison
Our market data shows Downtown Madison condo prices bottomed out in 2013. In 2013, the average price per square foot was $223. In 2015, the price per square foot jumped to $267. That's an increase of 19.7% in only two years. We expect the price per square foot to increase once again in 2016 based on current market conditions. Right now there are only 3.5 months of supply available downtown, and the demand for condos is very strong.
An Example of Rising Downtown Prices
A 2-bedroom condominium priced under $300,000 is like gold in Downtown Madison. Here's a real-life example: Five years ago we helped a client buy a 2-bedroom condo (pictured below) at Nichols Station. Our client Justin purchased his condominium for $197,000. Two days ago we helped him sell it for $255,000. Some people make bad buys and some people good buys. Justin made a great buy. His condo sold for $57,000 and 29% more than his original purchase price. This was without making any improvements to his property.
Is Now the Time to Sell?
There is no doubt market conditions are optimal for sellers right now. Of course every market and every situation is unique. Contact us anytime you'd like a market analysis completed for your property. We'll help you make sense of the market in your location and identify a good price for your home or condo.
This article is published courtesy of: Dan Miller, REALTOR Mad City Dream Homes & RE/MAX Preferred