The Greater Madison Area has seen consistent price growth for over a decade, and it took about 5 years to recover after prices dropped during the Great Recession, following the subprime bubble. Since the pandemic, we’ve seen prices exponentially increase year-over-year on a steeper curve than we had seen in the past. This was caused by the severe local inventory shortage paired with record-high buyer demand.
We mostly saw prices continue to increase in 2023 as interest rates rose, though at a more conservative rate + paired with a longer average days on market for most listings, as interest rate increases tempered affordability.
Now that interest rates have likely peaked at over 8% and are making their way back down, it’s reasonable to suggest that prices will continue their upward trajectory, with that curve getting steeper as interest rates fall.
