The following housing states are for both Madison, and for Wisconsin as a whole. Some markets may be down but Madison is a perfect example of how all Real Estate markets are local.
Between 2003 and the time of writing this blog, Home prices in the Madison MSA have increased 29.8%, compared to 28.2% for the rest of the state. Nationally prices have declined, but here in Madison ytd our home prices have appreciated 1.2%.
In our MSA, the average home price is $227,400, higher than any other MSA in Wisconsin, and Wisconsin as a whole. If you had purchased a $200,000 home in Madison 5 years ago, your equity appreciation alone would be worth $54,000!
Madison has very stable employment, the largest non-farm sector of which is Government. This is partially due to our large University. The State and Local government employ 23% of the Madison MSA non-farm workers. Trade, Transportation, Utilities, Professional and Businesses Services are the next largest employers.
Employment in the Madison MSA is expected to grow .4% in 2008, which is greater than the State and National trend. It is expected to be .4% in 2009, 1.6% in 2010 and 2.3% in 2011.
If you are still on the fence about buying here and laying down your roots, don't wait too long. Nationally pending home sales have increased 7.2%. New construction permits and housing starts are down, and current inventory numbers just released show the inventory is coming of the market, partially due to sellers and banks reducing purchases prices for buyers.
All of these stats point to the turnaround of the buyers market. Prices are stabilizing, inventory is disappearing and at least in Madison, we are experiencing growth.
Please do not wait for the bottom to make your decision, because when the bottom comes, you will have already missed your opportunity to take advantage of the buyers market.
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