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July 14th, 2019 by Marco Santarelli
How is The Madison, Wisconsin Real Estate Market 2019?
Real estate can be a worthy investment opportunity. With research, a plan and the right price, just about anyone can be a real estate investor. If you are looking at investing in the Madison real estate market as a potential investment opportunity, you must read till the end.
Madison is often overlooked in favor of the largest city in Wisconsin, Milwaukee. Yet the city is both the state capitol and the second largest in the state. Madison, Wisconsin is home to roughly a quarter of a million people. However, the Madison housing market is much larger than this.
Take suburbs into account, and the metro area is home to roughly 650,000 people. This metropolitan region is so large that it extends into parts of Iowa. Yet size alone can’t be a reason to invest in an area. There are a number of reasons to consider investing in the Madison real estate.
Is Madison going to be one of the hottest real estate markets for investors in 2019? To answer this question, let’s take a look at the latest Madison housing market trends and find out the prospects of investing in the Madison real estate in 2019.
Madison Real Estate Market Forecasts 2019 & 2020
The median home value in Madison is $254,200 on Zillow. Madison home values have gone up 2.9% over the past year and Zillow’s Madison real estate market prediction is that the prices will rise 1.3% by May 2020. The median list price per square foot in Madison is $169, which is lower than the Madison Metro average of $172.
The median price of homes currently listed in Madison is $299,900 while the median price of homes that sold is $256,700. The median rent price in Madison is $1,695, which is the same as the Madison Metro median of $1,695.
Here is the Madison real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 1.3% till May 2020.
Madison Housing Market Forecast 2019 – 2021
The Madison housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Madison housing market trend prediction is 85%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Madison, WI is 85% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Madison, Wisconsin Real Estate Forecast.
Madison Real Estate Market Trends
Madison real estate market trends indicate an increase of $15,000 (6%) in median home sales and a -1% drop in median rent per month over the past year. The average price per square foot for this same period rose to $172, up from $166. Trulia has 1,021 resale and new homes for sale in Madison, WI, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Madison for Apr 4 to Jul 3 was $265,000 based on 770 home sales. Average price per square foot for Madison was $172, an increase of 4% compared to the same period last year. The median rent per month for apartments in Madison for Jun 5 to Jul 5 was $1,780.
As per the real estate company named Redfin, the Madison housing market is very competitive. Homes in Madison receive 1 offers on average and sell in around 41 days. The average sale price of a home in Madison was $290K last month, up 7.0% since last year.
The average sale price per square foot in Madison is $161, up 2.5% since last year. Homes typically receive 1 offer. Homes for sale in the Madison housing market sell for about 1% above list price and go pending in around 41 days. Hot Homes for sale in Madison, WI can sell for about 4% above list price and go pending in around 18 days.
Madison Housing Market Statistics
There are 1,656 homes for sale in Madison, WI ranging from $32.9K to $10.5M on Realtor.com. 141 of which were newly listed within the last week. Additionally, there are 487 Madison rental properties, with a range of $500 to $11.7K per month. In June 2019 the housing market in Madison, WI was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
The median list price of homes in Madison, WI was $319.9K in June 2019, trending down -5.1% year-over-year. The median listing price per square foot was $164. The median sale price was $304.3K. On average, homes in Madison, WI sell after 54 days on the market. The trend for median days on market in Madison, WI has gone up since last month, and slightly down since last year.
The median list price in Madison, WI is $334,950 on Movoto.com. The median list price in Madison went down 1% from June to July. Madison’s home resale inventories is 446, which increased 2 percent since June 2019. The median list price per square foot in Madison is $181. June 2019 was $184. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in July 2019.
Madison, WI Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the real estate company called Neigborhoodscout.com, the median house price in Madison, WI is $281,359, which indicates that home prices in Madison are near the national average for all cities and towns in the United States. Single family detached homes are the single most common housing type in Madison, accounting for 42.57% of the city’s housing units.
Other types of housing that are prevalent in Madison include large apartment complexes or high rise apartments ( 39.26%), duplexes, homes converted to apartments or other small apartment buildings ( 12.48%), and a few row houses and other attached homes ( 5.11%).
People in Madison primarily live in small (one, two or no bedroom) single-family detached homes. Madison has a mixture of owner-occupied and renter-occupied housing.
The Madison real estate market continues to trend very favorably for sellers of single family homes. Homes are selling quickly in 2019. Inventory remains limited and Madison single family home prices are on the rise.
Currently, there are 625 single family homes for sale in Madison, WI on Zillow. Additionally, there are 272 single family homes for rent in Madison, WI. Under potential listings, there are about 6 Foreclosed and 40 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Madison, WI Foreclosures And Bank Owned Homes 2019
According to the real estate company called Zillow, in Madison 0.1 homes are foreclosed (per 10,000). This is lower than the Madison Metro value of 0.7 and also lower than the national value of 1.2. The percent of delinquent mortgages in Madison is 0.4%, which is lower than the national value of 1.1%.
With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Madison homeowners underwater on their mortgage is 3.8%, which is higher than Madison Metro at 3.7%.
There are currently 103 properties in Madison, WI that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 558. In May 2019, the number of properties that received a foreclosure filing in Madison, WI was 0% higher than the previous month and 0% higher than the same time last year.
Home sales for April 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Madison was $0. The median sales price of a foreclosure home in Madison was $0, or 0% higher than non-distressed home sales.
Madison Home Prices And Real Estate Appreciation 2019
Madison home prices have been trending higher since 2013. Prices increased in 11 of 12 months in 2018 and started the year off higher in 2019. The cumulative real estate appreciation rate over the ten years has been 22.29%, which ranks in the top 40% nationwide. This equates to an annual average Madison house appreciation rate of 2.03%.
Over the last year, Madison appreciation rates have trailed the rest of the nation. In the last twelve months, Madison’s real estate appreciation rate has been 3.21%, which is lower than appreciation rates in most communities in the nation.
In the latest quarter, real estate appreciation rates in Madison were at -0.62%, which equates to an annual appreciation rate of -2.44%.
The above statistics on real estate appreciation in Madison, WI were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to Wisconsin, their data shows that Madison’s latest annual appreciation rate is lower than 70% of the other cities and towns in Wisconsin.
Best Places To Buy Real Estate In Madison, Wisconsin
If you are looking to buy real estate in Madison, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Madison real estate and you should be able flip it for a lump sum profit.
When looking to invest in Madison real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Madison investment property should be low. The neighborhoods in Madison must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.
There are 82 neighborhoods in Madison. There are 144 schools in Madison, WI. There are 58 elementary schools, 29 middle schools, 20 high schools and 37 private & charter schools.
Some of the best neighborhoods in Madison, Wisconsin are Downtown Madison, Regent and Monona. Cherokee Park has a median listing price of $525K, making it the most expensive neighborhood. Sherman is the most affordable or cheapest neighborhood in Madison, WI with a median listing price of $212,000.
Here are the 10 best neighborhoods in Madison to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
Should You Invest In Madison, WI Real Estate In 2019?
Is it worth buying a house in Madison, WI? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Madison is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Madison housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Madison but we have collected ten evidence based positive things for those who are keen to invest in the Madison real estate in 2019.
Investing in Madison real estate will fetch you good returns in the long term as the home prices in Madison have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Madison real estate market which can help investors who are keen to buy an investment property in this city.
1. The Geographical Constraints
Because the city is wedged between Lake Mendota and Lake Monona, it can’t grow in two directions. It has exploded out like a funnel from the isthmus it was founded on. There are several recreational areas and state parks that have blocked off flood-prone land and undeveloped spaces to construction, further restricting growth in the area.
2. Madison is a Large Student Market
Any state capitol is going to be home to a flagship campus of the state university system. The University of Wisconsin Madison campus dumps around forty thousand likely renters into the Madison housing market.
However, it isn’t the only college in the area. Herzing University is a private college with around two thousand students. Maranatha Baptist Bible College is home to more than a thousand students. Globe University has two campuses, each with around 140 students.
This gives investors the ability to diversify their Madison real estate investment portfolio even while catering to the student market.
3. The Relatively Affordable Taxes
Wisconsin ranks 16 out of the 50 states in terms of overall tax burden. All of the Midwest ranks relatively high in these national reports. However, Wisconsin is a relative bargain compared to the rest of the region.
For example, its income taxes are far lower than Illinois, and Illinois is planning on jacking up property taxes one full percentage point on the entire state.
This is in comparison to Madison authorities hardly increasing tax rates or assessments, and in some cases, lowering the property taxes people owe. Wisconsin’s income taxes are lower than Iowa and Ohio’s, too.
4. The Strong Economy
The Madison real estate market is bolstered by the strong local economy. The state and city governments are major employers. So, too, are educational institutions from the school district to the various colleges in the area.
Private employers like Epic Systems are major employers, as well, balancing out the job market. The unemployment rate in Madison is less than 3 percent. On the edges of the Madison real estate market, unemployment edges up to five percent.
Unemployment rates in the Madison area are consistently a full percentage point lower than the national average and far lower than unemployment rates in rural parts of the state.
That creates long-term demand for Madison real estate investment properties as people move from rural areas to the city to work or come for school and decide to stay.
5. The Strong Wage Growth
Madison doesn’t just have a hot job market. Thanks to the university and government support, it is becoming a high tech hub. This is creating not just new jobs but high paying jobs in Madison.
This will attract many new people to the Madison housing market while driving demand for both single family homes and luxury properties. These high paying jobs range from coding to gaming to electronic medical records.
This is why the average salary for Madison residents is several thousand dollars higher per year than the state average.
6. The Demographic Momentum
Demographic momentum refers to the trends an area is undergoing. The Madison housing market will benefit from the area’s much younger than average population.
The average age for residents is 31, eight years less than the state average. While many college students move on, many choose to stay in the area due to its low unemployment and start their families here.
This creates slow, steadily growing demand for the Madison housing market, though the rest of the state is in demographic decline.
7. Livability Attracts People
While people may be able to find jobs in a number of cities, many choose to come to Madison because of its overall quality of life. The city is dotted with green spaces, and housing doesn’t cost a fortune.
There’s a strong nightlife thanks to the universities, but you’re an hour drive from twenty state parks and wilderness areas. And you get all of this with a cost of living roughly seven percent below the national average.
8. The Relatively Affordable Madison Real Estate
The average home in the Madison real estate market surpassed three hundred thousand dollars in 2019. This is higher than the state average. However, it is a bargain compared to hot regional markets like Chicago.
There, you’d be hard pressed to find a rental house for less than 350,000 unless you don’t mind worrying about the crime. You can find rental real estate in Milwaukee, too, but a house that costs less than 150K is often in a neighborhood you’d be afraid to visit.
The Madison real estate market is notable for the sheer number of “surban” neighborhoods that Millennials want, walkable neighborhoods with amenities that offer more than tract homes. This mid-level density is being built in new planned communities around the country, and they’re generally upscale developments.
The Madison housing market offers numerous existing properties in older neighborhoods, making Madison real estate investment more affordable for those who’d otherwise pay half a million dollars for such a hot property.
9. The Larger Than Expected Madison Rental Market
The demand for Madison real estate investment properties by renters is higher than you’d expect for several reasons. One is that the Madison housing market costs more than the state average due to demand.
The second is that the large population of student renters in the Madison real estate market drives up rents, forcing many renters to save up longer before they can buy a home.
There are also Millennials who work here after graduation but are reluctant to commit to buying a house, so they continue to rent. This is why less than 60 percent of Madison residents are home owners.
10. The Hidden Affordable Housing Market
While Madison, Wisconsin is a mid-sized city in its own right complete with suburbs, the surrounding area includes a number of villages and un-incorporated areas.
You could diversify your Madison real estate investment portfolio by owning a stake in a trailer park or renting out a trailer home that costs less than 30,000 dollars to buy.
If you’re looking for bargains, rural properties are one of the few such options because there are so few distressed sellers delinquent on their mortgage. (A third as many people are late on their house payments as the national average).
Note that some of these are located close to Madison proper, sitting near recreational areas and other less desirable land.
Madison Real Estate Investment
Maybe you have done a bit of real estate investing in Madison, Wisconsin but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Madison real estate investment opportunity would be a key to your success. in If you invest wisely in Madison real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Madison investment property is, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Madison, you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Madison, WI. The Madison, Wisconsin area sits in a sweet spot. It is larger than a small town and has the amenities of a big city, but it lacks the problems of some of the larger cities in the region.
It is attractive to many who come here to learn and work, but it isn’t growing so fast that it suffers problems from that growth. These are a few reasons why you should seriously consider the Madison area for investment.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Madison, WI is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Madison real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2019
The other best place to invest in real estate is Santa Fe, NM. Santa Fe is often overlooked in favor of larger cities in New Mexico or the more exotic, touristy destinations like Taos. However, the recovering Santa Fe housing market is ripe for investment.
The Santa Fe housing market sees a small but significant influx of snowbirds or winter residents. It attracts those interested in its history, arts scene and educational institutions instead of the perennial golfers heading to Scottsdale, Arizona. This also creates a larger than expected demand for mobile home slots and one and two bedroom homes for rent.
Another sizzling market to invest in real estate is Asheville, NC. The Asheville, North Carolina area is a stable, steadily growing housing market with several profitable rental markets investors would appreciate. It counterbalances this with a healthy job market and demographic momentum that will keep it going strong for years to come.
The lush forests around Asheville attract tourists for the hiking, rafting and other outdoor activities. The city has limited short-term rentals, but that doesn’t mean this isn’t an option if you own Asheville real estate investment properties.
For example, parts of the Asheville real estate market are zoned as “resort”. You can rent these properties out on short term rental sites to your heart’s delight.
Properties that already had short term vacation rental permits are grandfathered into the existing rules, though you should verify the permit could transfer to you before buying it the Asheville real estate investment property. Towns outside of Asheville proper have their own rules, too, and are more relaxed in this regard.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Overview of Madison
Larger rental market
Affordable real estate
Affordable housing market
Housing Market Data, Trends & Statistics
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