All signs indicate that Madison’s residential real estate market will remain robust in 2025, and I anticipate it will be even stronger than in 2024. Last year brought uncertainty and conservative buying behaviors driven by interest rate fluctuations and election-related apprehensions. However, I believe consumers have now adjusted to the "new normal" of interest rates, moving past the exceptionally low 2-4% rates seen during the COVID era. Additionally, they have come to terms with the outcomes of the election, regardless of their political affiliations.
My team interacts daily with many individuals who have postponed making necessary moves for themselves or their families over the past few years. Many of these clients have reached a tipping point, needing a change in location, more space, or specific amenities. I expect this pent-up demand to surface strongly in 2025, particularly in the first half of the year.
Home prices are likely to continue appreciating at a faster rate than we saw in 2024. This is due to a combination of strong demand and Madison’s historically limited housing inventory. In the first quarter, competition is expected to be particularly fierce because of the limited supply—excluding new construction. Suburban areas will remain attractive to buyers seeking more space and a broader range of options, all within a short commute from Madison.
The ongoing growth of companies like Epic and Exact Sciences, as well as other expanding tech and healthcare organizations, will continue to drive housing demand. The steady activity from students and professionals at UW-Madison adds another layer of pressure to the market, alongside Madison’s overall population growth.
My team is gearing up for a strong and productive spring market, which could kick off as early as next week. If the performance of our latest listing near Monroe Street is any indication, buyers are eagerly awaiting new inventory. Many are seizing opportunities to secure homes before the traditional spring market gains full momentum.
2025 is shaping up to be an exciting year for Madison’s real estate market, and my team is ready to help clients navigate it successfully.
Posted by Alison Crim on
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