This year we're getting a jump on our annual predictions for the Madison real estate market. Without further adieu, here our real estate predictions for 2018. (For a look back at last year's predictions, check out this post.)
#1: New home and condo construction will remain low.
New apartment buildings continue to pop up all over the city. Meanwhile, single family home housing starts have plateaued in 2017, while new condo construction remains almost non-existent. All signs point to more of the same in 2018.
#2: The foreclosure pipeline will be nearly empty.
Madison area foreclosures are at a 16 year low, which means distressed property listings will be relatively rare in the coming year.
#3: Housing demand will remain strong.
Madison has the strongest economy and fastest growing population in the state. There will be no shortage of people looking to buy homes and condos in 2018.
#4: Home and condo listing inventory will remain historically low.
Strong demand and a low influx of new construction and foreclosure properties will lead to another year of historically low inventories. We project less than 2 months of home and condo supply throughout all of 2018.
#5: Madison home prices will rise by at least 5%.
Persistently low inventory and strong demand will drive local home prices higher for the 6th straight year. Affordability will continue to be an issue for many first-time home buyers.
#6: Madison condo prices will rise by at least 8%.
Local condo prices will rise by an even higher amount due to the large number of cash buyers in the condominium market. Down-sizing Baby Boomers with cash will drive prices higher in 2018.
#7: Home and condo sales will remain flat.
Low inventories will limit the number of sales in 2018. A large group of "reluctant renters" will miss out on buying due to low supply. Pent-up demand for homes and condominiums will be very strong for the foreseeable future.
#8: The income property market will be white hot.
Demand for duplex properties will be strong as both first-time home buyers and investors compete for these listings. Larger, multifamily properties will continue to be coveted by both local and out-of-state investors.
Recommendations for 2018 sellers
Believe it or not, the ideal time for listing a home is right around the corner, which means right now is the time to be preparing your home for sale. Get your preparations off to a good start by following these 5 tips for a great 2018 listing.
Recommendations for 2018 buyers
All signs point to an ultra-competitive market in the coming year. Hire an experienced team and begin your search right away if you're serious about buying in 2018. Buying during the slower season is a smart play if your goal is to purchase your home for a fair price. The annual Spring bidding wars and over-heated market are only 3 months down the road.
Contact us anytime with your real estate questions and concerns. We're always available to chat real estate.
This article is published courtesy of: Dan Miller, REALTOR Mad City Dream Homes & RE/MAX Preferred