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 ago, it's a very low number by historical standards and a clear indicator of a seller's market.
Low supply dampened sales in August. Sold listings decreased slightly from the number of listings sold in August of 2016.
Low supply also limited the number of accepted offers written in August.
Days on market reached a new low in August. This is more strong evidence that our low supply market strongly favors sellers over buyers.
Home prices continue to climb in Madison. The price per square foot increased 6% in August and 10% year-to-date. Madison home values are now well above previous peak values from 2006 and 2007.
August Condo News
The inventory crunch is a big factor in the Madison condo market, too. Right now there only 1.8 months of condo supply in Madison. Condos priced under $250,000 are especially hot right now.
Condo sales increased slightly in August but were well below historical highs. Sales would be much higher if more condos were available for purchase.
Accepted offers also increased in August but were lower year-to-date.
The average days on market in August was 40 days, which was the second lowest on record.
Through the month of August, Madison condo prices are at an all-time high and up 13% from last year.
Tips for Buyers in a Low Inventory Market
Buyers who use a number of creative search strategies have the advantage over buyers who rely on the traditional MLS search. One very effective tactic for this market is to send personal letters to property owners in your preferred location. Check out this article for a few tips on how to make a personal letter campaign work for you.
Tips for Sellers in a Low Inventory Market
Even in a sellers' market it's still important for home owners to do the right things. Check out these 5 tips for home owners who are planning to sell early next year. Implement these 5 recommendations right now and you'll be on track for a successful listing in early 2018.
Do you have questions about how to navigate our low inventory market? Give us a call, and we'll help you sort things out.
This article is published courtesy of: Dan Miller, REALTOR Mad City Dream Homes & RE/MAX Preferred