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 address the need for more condominiums. Take a look at the approved and current development projects underway in the city, and you'll see there's very little new construction in the pipeline. An empty pipeline means condo supply is likely to remain very low for at least the next few years.
#3: A growing population
Madison has a thriving economy and the fastest growing population in the state. Condo demand will continue to exceed condo supply for as long as our economy and population keep growing.
#4: Pent up demand
There are many buyers out in the marketplace who would love to purchase a condo - but due to low supply they're still waiting for the right condo to become available at the right price. This large, pent up demand will be the source of many competing offers and bidding wars in the coming year.
#5: Baby boomers with cash
Much of the pent up demand in the marketplace comes from Baby Boomers with large savings accounts. Cash offers without appraisal contingencies will be commonplace in 2018, and will push Madison condo prices to record highs in the year ahead.
Are you planning to buy or sell a condo in the coming year? Give us a call to discuss your goals. We'll help you put a solid plan in place for Madison's low supply/high demand market.
This article is published courtesy of: Dan Miller, REALTOR Mad City Dream Homes & RE/MAX Preferred