Could your new home be in Madison, WI? For the last three Novembers, the average Madison single family days on market for sold listings (the number of days from the date of the sellers listing until the date of the accepted offer) has been between 34, 33, and 35 days from 2016, 2017, and 2018 respectively. That’s the lowest year-to-date average recorded since at least the year 2000. The average days on market for the full year of 2017 was just 32 days. Compare this to the rest of the yearly days on market average starting from 2000, which saw hovered between 40-48 days for the early 2000’s, 64-75 days for the mid to late 2000’s, and then peaked at 86 days in 2011.
What this data indicates is that for the last several years, Madison has seen a strong sellers market for its real estate despite steadily rising prices for all properties in 2018. The average price for Madison single family sold listings was $237,848 in 2013 but five years later in 2018, their sold listings were $308,184 (29.5% increase). However this has done little to discourage demand for Madison’s competitive housing market. Realtors in the area say there’s unprecedented demand for homes now and that any new homes for sale madison wi are hard to come by.
According to a May 2017 report from the South Central Wisconsin MLS Corporation “sales of single family and condominium homes are being held back by a significant shortage of available supply” and 2018 saw 2,733 new listings enter the real estate market, the lowest number of listings in 6 years. So while the market have been auspicious for sellers, it has been a frustrating process to buyers looking for a home. The current disparity of available homes to prospective buyers can be traced back to the housing bubble and subsequent burst in 2007. When the market collapsed, construction on new houses was scaled back and housing values were lowered, so some people weren’t able to purchase new homes and others wouldn’t sell their devalued realty for a lost. Once the market began to recover, previous demands for homes were finally possible in addition to lower interest rates which made buying homes all the more appealing. This is helpful in explaining Madison’s low average days on market next to the national average of 64 in April 2018.
The building of new homes hasn’t been able to keep pace with the demand from eager buyers who have, in some cases, resorted to overpaying on property in order to better guarantee that their offer is the one that’s accepted and beat the competition. For someone looking to potentially buy a new home for sale or rent a place in Madison, it may be best to wait for the local housing economy to start experiencing buyer’s fatigue and allow things to cool down a bit and buy any dips in the market to get a better price. Simply waiting out the current frenzied market could prove the better move in the long run.