Whether you’re a homeowner trying to decide when to sell or a buyer who’s ready to dip their toes in the market, one thing is for sure: you’re going to need a bit of market intel to ensure you’re moving at the right time. With this in mind, let’s take a look at how the Madison real estate market has performed throughout the first six months of the year, and where we expect things to go as we close out 2014.
Median Sales Prices Are on the Rise
One of the main indicators of the health of a real estate market is the median sales price of homes in the area, and in this regard Madison is looking positive. Year to date, median prices in Madison are up ever-so-slightly, rising from $190,000 to about $195,000 at the end of June. The numbers are similar for Dane County, with a year to date median price of $210,700, which is up about 0.8% over last year’s $209,000. As median home prices are seasonal and tend to peak in the summer months when buyers are furiously competing for available real estate, expect these numbers to climb a bit before settling back down later this year.
Sellers Take Note: Total Home Inventory is Down
The first half of 2014 ended with Dane County showing just 5.9 months of inventory* available on the market, which represents the lowest available real estate inventory we’ve seen in the area since 2006. If you’re thinking of selling your home you might want to consider listing soon, as you may find that you receive quick offers close to or at your listing price. Conversely, if you’re looking at buying in Madison you will want to move quickly when you identify the house or condo that fits your needs and budget as it may be off the market soon.
*(Note: ‘months of inventory’ are realized by dividing the total number of active listings on the market by the average number of monthly home sales over the past year.)
Bargain Hunting? Try a One-bedroom Home
If you’re looking for the best real estate deals in the Madison area, look no further than one-bedroom homes. In the April-June quarter, these homes saw a median price decline of about 7.5 percent, dropping from $130,000 down to about $111,000. This price is one of the lowest we’ve seen in the past five years, offering an excellent opportunity for young professionals and couples to jump into the real estate market without having to take on a large mortgage. If a condo or small home suits your needs, move quickly as these homes won’t be priced this low for very long.
If you have questions about real estate in Madison or elsewhere in Dane County, the professional team here at Nicole Charles & Associates is happy to help. Visit our contact us page to get in touch by email or you can call us at your convenience at 608.622.SOLD. We look forward to helping you find your new home!