The Madison single family home market continued to show rapid price appreciation in May. The Mayprice per square foot was $158 which was up 12 percent from $142 per square foot in May of 2016. Prices in May were well above the market peak from 10 years ago.
Through the first 5 months of the year, the price per square foot was $153, an increase of 11% from $138 through the first 5 months of 2016.
Days on market are at record lows.
Single family homes are selling at the fastest pace ever. The average days on market in May was only 28 days.
Year-to-date through May, the average days on market was only 41 days, also a record low.
Inventory remains scarce.
Only 1.4 months of supply were available for sale as of June 11th. Just under 50% of all Madison single family home listings were under contract with an accepted offer. This high percentage is a clear indicator of a very strong seller's market in Madison, especially for homes priced below $350,000.
Competing offers are off the charts.
A greater percentage of single family home listings are receiving multiple offers, which is driving prices higher. Almost 50% of all accepted offers in April involved competition from other parties. Heavy competition in April drove prices higher when these transactions closed in May.
Thoughts for Sellers and Buyers in the 2017 Market
All signs point to low inventory for the foreseeable future, so home owners should be able to successfully sell their property at any time of year. See this post for more info on how to get started with the home-selling process.
For those buyers who missed out on their dream home this spring, a more balanced summer market offers a second chance. The summertime is a time of opportunity, but only for those buyers who remain vigilant and proactive with their search.