Market Updates

Articles about the Dane County and Madison Real Estate Market

Found 54 blog entries about Market Updates.

Madison condo prices are rising rapidly. As we recently reported in our latest market update, prices are up 13% through the month of October. That's a huge year-over-year increase - and one that's not sustainable. Although we don't expect prices to increase another 13% in 2018,  a 10% increase is entirely possible. Below we've outlined 5 reasons why local condo prices will continue to escalate in 2018. 

5 reasons why Madison condo prices will rise again in 2018

#1: Historically low supply 

Right now the Madison condo market has only 1.5 months of supply. This is about as low as it gets in our market. Historically low inventory will push prices higher in 2018. 

#2: An empty pipeline

Very few new construction condos are being built to

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We recently noted in our October real estate update that there are only 1.7 months of supply in the Madison housing market. We're expecting more of the same for the foreseeable future, and here's why:

New home construction is low. 

Although there is a genuine need for more inventory, new housing starts remain about 50% below the peak levels from 2002 - 2005. One big reason for this is the last real estate downturn put many home builders out of business. With fewer builders in the marketplace, fewer homes are being built.

Housing starts for duplexes and single family homes have basically plateaued, as can be seen in this graph below. It's also important to note that new condo construction is at a virtual standstill and nowhere near the level

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We've updated our trend reports for the Madison single family home and condo markets, and the major theme continues to be low inventory. As of October 17th, only 1.7 months of supply are available for sale in the Madison single family home market. The single family market has now had less than 2 months of supply for 23 straight months. Inventory is especially tight for houses priced under $350,000. 

The condo market also has only 1.7 months of supply. Condos priced under $250,000 are in highest demand right now. 

Home Prices

In September, the Madison single family home price per square foot was $155, which was a record high and up 7% from last year. Year-to-date the price per square foot is up 10%. 

Condo Prices

The condo price

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In our August real estate update we've noticed an interesting trend in the Madison single family home market: New Madison listings have now quietly increased in 5 of the last 6 months. From March through August, listings are up 5% from the same months in 2016. This is a modest increase, but it's a step in the right direction toward a more balanced market which has enough housing supply to meet the needs of Dane County's growing population. We'll keep a close eye on listings in the months ahead. 

More Single Family Home News

All of our latest single family home statistics show it's still a strong seller's market in Madison. Currently there are only 1.9 months of single family home supply. Although this number is up slightly from 1.8 months a year

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Home and condo prices rose again in July as the seller's market continued in Madison. Here's a brief market summary for the month of July. 

Madison Single Family Home Market

The price per square foot rose from $146 in July of 2017 to $158 last month - a record high for the single family home market. July home prices rose 8% year-over-year and 11% year-to-date. 

July 2017 Madison WI Home Prices

The days on market statistic also set a new record in the month of July - reaching a new low of only 22 days. On a year-to-date basis, the days on market averaged only 32 days, which is also a record low. 

Months of supply continued to trend along historically low levels. This snapshot taken a few days ago shows there are only 1.8 months of inventory in the Madison single family

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Low Housing Supply in Madison WIRealtor.com says Baby Boomers are a major cause of the housing shortage in the US. According to these recently released survey results, Boomers are generally satisfied with their current home and reluctant to move onto a new setting. This generational trend, according to the survey, is keeping listing inventory low and freezing would-be buyers out of the market. Among the survey findings:

  • 72% of Boomers say their home meets their current needs.
  • 85% of Boomers don't plan to sell in the next year.
  • Up to 33 million properties are being withheld from the market due to this generational trend. 

There's much more to the story than this. 

The survey makes it clear Baby Boomers are generally content to stay put in their current home, but it

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Through the first half of 2017, the Dane County real estate market is setting new records in a continuation of the trends we shared earlier this Spring. Dane County properties are selling quickly. Inventories are low, and prices are increasing. Sales are declining in most locations due to low supply. Here's our market summary covering a few of the county's largest communities. 

Home Price Per Square Foot

The price per square foot is our best statistic for measuring property value because it's adjusted according to the square footage of each sold listing. As you can see in the table below, home values are historically high in every community we track. Prices are increasing by some large amounts, especially in Cottage Grove, Madison, and McFarland -

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We recently blogged about the shifting summer real estate market, and how buyers and sellers should adjust their expectations accordingly. This confuses some people, because media headlines can lead us to believe the market is always in a crazy, hyperactive state. The truth is the market is constantly changing throughout the year.

Another thing to keep in mind about real estate headlines is most of the time they're based on old data. For example, very soon we'll be reading about the latest market data for closings that occurred in the month of June. The important thing to remember about the June data is it's based on offers that were written in the months of April and May. By default, most of the headlines we read are the result of market dynamics

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The Madison single family home market continued to show rapid price appreciation in May. The May price 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

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The Madison condo market has been hot all year and prices are on the rise. Prices rose 15% in May based on our price per square foot statistic. The May price per square foot was $143, compared to $125 in May of 2016. 

 

Year-to-date through May, the price per square foot is up 12% - from $134 in 2016 to $151 in 2017. This year's market is approaching the 2006 market peak - when the price per square foot was $152. 

Madison condominiums are selling at the fastest pace on record. 

Condos are selling at the fastest pace ever. The May average days on market was only 41 days. 

 The year-to-date average is 52 days - also a record low.  

What's driving the hot market? 

Low inventory. As of June 9th, only 1.5 months of supply were

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