Madison Real Estate Market Trends & Forecast
Planning to invest in Madison real estate? You have taken the right decision. The next couple of years, especially 2020 looks great for Madison in terms of the real estate market. After carefully analyzing the trends and the other factors that impact the housing market, we can safely infer the positive.
From a real estate market perspective, Madison is always in demand and hence there has been a steady rise in the price of homes since the last 2 years. More specifically the sale price this year has gone up by about 5.7% when compared to last year. This is a great trend for the sellers, particularly that of single-family homes.
Madison Real Estate Market Trends 2019
As per the trends from the past 5 years, real estate in Madison has been growing at a good rate. Home price index has consistently increased and residential housing is experiencing an upward trend. New houses are on the market for about 42 days before being sold out, which is an encouraging number.
This year’s rising trends for single-family homes can prove quite worthy for investors. There is a good 6.4% increase in all the real estate values. Due to increasing demand, investors have to make living much more affordable even for the lower-income class.
Since there is a regular inflow of people from other places to Madison, buying a single-family home could be a huge investment for someone who just got a job or hasn’t saved enough. In such cases, buying a condo will make more sense because it comes with the basic amenities, maintenance facilities and the benefits of living in an apartment complex. 2020, will thus see more people investing in condos too.
According to the Wisconsin State Journal, new constructions are expected to gain momentum early next year, where $165 million could be generated from single-family homes and about $424 million from commercial establishments like apartments, hotels, etc…
Madison is located between two water bodies and despite this geographical constraint, the city continues to expand. Agricultural lands are turning into new establishments to meet the growing demands.
Madison Real Estate Market Forecasts 2020
Can we expect real estate to boom in 2020? To answer this, let us examine the positive factors that make Madison a great real estate investment choice –
- Strong economy – The economy in Madison is booming because there is a good balance between government and private jobs. The unemployment rate in rural areas is slightly higher than the rate in the city area. However, the overall unemployment rate is less than 3%. Since there is always a flow of people from rural to urban areas for jobs, demand for the home is always in fashion. This makes it a good choice for a long-term real estate investment.
- High-paying jobs – Some of the best jobs are created by the Madison government and the University. This attracts people from different places to move into the city, thus creating a good scope for single-family and luxury properties. Further, since the jobs are well-paid, people don’t mind spending a good amount of money on real estate.
- A huge student base – The University of Wisconsin, Madison alone absorbs about forty thousand students, thus creating a huge inflow of students who need a place to live. There are many other popular universities. This gives a great opportunity for real estate investors to customize their investment portfolio based on the student market.
- Lower income-tax – Income-tax is a dreaded term for most of us. However, in Madison, the income tax rates are lower than any other place in Wisconsin. For example, compared to Illinois, Ohio or Iowa, taxes in Madison are way less.
- Demography of the place – Madison has a good market for younger generations, popularly called as the millennials. There are plenty of universities and high paying jobs. Thus, it is a convenient choice for those who have come from a different place to eventually buy a house and settle here.
- Quality of life – Madison offers variety in living standards. On one hand, there is a vibrant nightlife and on the other hand, there are serene parks and entertainment places for kids. Greenery and concrete buildings coexist in harmony here. This optimum quality of life, well-developed infrastructure and variety are attracting many investors towards the place.
- Safety – Another important factor is that the crime rates are very low in Madison compared to any other city. Madison is safe for kids, adults, women – basically everybody. People are friendly, helpful and co-operative. It is this culture that consistently ranks Madison as a top contender for the real estate market.
- Affordability – The current generation aims to get the best of everything at affordable rates, and Madison gives just that. With the lower cost of living, the city is increasingly becoming a perfect choice for investment.
As we see from the above, the average population that prefers Madison as their choice of destination are the millennials – they like the job opportunities as well as the idea of affordable yet good quality living. Further, other than government jobs, private sector companies like Google are planning to expand their market to Madison very soon.
Madison Real Estate Market Analysis
Based on the above analysis, here are some key highlights for real estate in Madison in 2020 –
- For buyers, the market would be competitive yet not so intense. For a seller, it could be a good feat. The demand is going to stabilize and sellers will need a good strategy to stand out in the crowd and get the best deals.
- Currently, there are not many new constructions going on, however, with the number of sales that have been happening since August 2019, we can expect some good progress in construction of new residential buildings in 2020.
- Mortgage rates will further increase, increasing the number of foreclosure processes.
- Rising supply compared to demand will lead to a rise in housing inventory and bring balance in the demand-supply chain.
- For buyers, it is a good time as the prices will be competitive.
- Agents and consultants will have a bigger role to play in helping customers decide their buying strategies.
- Real estate market will grow the most in the Far East Madison with selling price as affordable as $290,000 for 2 bedrooms.
- As per Zillow.com’s predictions for 2020, the value of a single-family home will increase though a little less than the current year.
- More young couples would prefer buying condos because of their otherwise busy schedules.
The real estate market looks steady for 2020 and it could be your best investment decision ever. From some of the best amenities, infrastructure, universities, and jobs, Madison housing market will stay in a beneficial position for at least a few years to come. Invest in a home which can fetch you good returns – most people prefer homes that are furnished, have good facilities and are ideally located – close to their workplace or university. If you are planning to buy a property for yourself or are a business person looking for some long-term benefits with real estate investment, it is better to seek the help of a professional consultant or agent who can guide you with the best buying options. Whatever be your intention, this would be your investment for a lifetime – do it with good care and research.