Madison home and condo prices took a big leap in April. Here's a quick look at the April numbers.
The price per square foot jumped by $22 from April 2016 to April 2017. That's an increase of 16%.
Year-to-date, the price per square foot was up by $14 through the month of April - an increase of 10%.
The April condo price per square foot increased $16 year-over-year - an increase of 11%.
Year-to-date the price per square foot was also up by 11%
What's driving prices higher?
Increased competition. Amazingly, 47% of all single family homes that went under contract in March involved 2 or more competing offers. That's the highest percentage we've seen in the Madison market. Increased competition in March helped drive home prices higher when these transactions closed in April.
(Competing offers in the condo market also increased significantly in March, but by a lesser amount than the single family home market.)
What other factors are involved in rising prices?
As we shared earlier this year, the new normal for Madison real estate is persistently low supply. This has certainly been the case in this year's Spring market, and all signs point to more of the same in the months ahead. We expect prices to remain elevated for as long as supply remains historically low.
Another key influence on prices is emboldened sellers. Many sellers are selecting ultra-aggressive list prices that would have been unimaginable a couple of years ago. Sellers are naming their price and very often they're getting it, too.
For More Info on the Latest Market Conditions
Check out our updated home and condo reports on our real estate trends page. Keep in mind the market is undergoing a seasonal change right now. Demand is dropping as it always does this time of year. The ultra-competitive spring market is giving way to a more balanced summer market. This means both buyers and sellers will be able to accomplish their goals this summer, but without a lot of the drama that has characterized the market over the last 3 months.
This article is published courtesy of: Dan Miller, REALTOR Mad City Dream Homes & RE/MAX Preferred