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July 25, 2024

Madison, NJ - Real Estate Market Overview 2024

Zoe Harper

Marketing

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Madison, NJ, shines as a community full of history and educational highlights. It sits 26 miles west of Manhattan. This charming borough balances suburban peace and urban convenience perfectly¹. It boasts both old and new houses, making it a great place for buying property¹.

The real estate scene here features lots of homeowners, varied types of homes, and very high home value growth². The median home price is $937,200, showing its strong appeal². The rental market is also strong, with rents averaging at $4,027².

Madison seamlessly blends historical beauty with modern living. It reports annual appreciation rates of 17.30% and quarterly rates of 24.83%². This steady growth makes it attractive for both living and investing².

Key Takeaways

Madison, NJ, is located about 26 miles west of Manhattan¹.
The median home value in Madison is $937,200².
Average market rent in Madison stands at $4,027 per month².
Homeownership rate in Madison is 57.7%, with 42.3% renters².
Madison has one of the highest home appreciation rates in the nation².
The town offers diverse housing options and numerous recreational areas¹.

Introduction to Madison, NJ Real Estate

Madison, NJ, sits in Morris County's heart and is known for its rich history, top-notch schools, and lively cultural life. It's a great place for anyone looking to invest in real estate in Madison. The town boasts pretty streets, historic buildings, and offers and offers lots of activities and a strong economy to its residents.

Location and Community Details

Known as the "Rose City," Madison offers excellent education, making it perfect for families. It's home to a thriving arts scene, beautiful parks, and sports facilities. Plus, there's a historic business district with shopping and dining, making the town an engaging place to live.

One standout property is at 8 Harwood Drive. It has five bedrooms, three bathrooms, and a big third level with potential for more space³. The house sits on over 0.5 acres with a large backyard for outdoor fun³. With recent upgrades like new paint and a water purification system, it's a prime example of Madison's real estate opportunities³. Learn more about investing in Madison.

Overview of the Local Economy

Madison's economy is solid and helps drive up property values. Various businesses and industries keep the local economy booming. Even with broader economic issues, Madison's real estate market is strong thanks to its diverse economy.

Despite being in a state with some vulnerable markets in 2023, Madison is doing well⁴. Efforts to improve infrastructure and boost the economy have paid off. Data shows low foreclosure rates and stable unemployment figures in the area⁴.

This makes Madison a solid choice for real estate investment. Its economic health, combined with great amenities and a strategic location, attracts both homeowners and investors.

Current Market Conditions in Madison, NJ

The real estate market in Madison, NJ is strong and active. The town has seen a trend where it's a seller's market. This means home prices are going up and homes sell quickly¹. Madison offers a lot like parks and easy access to cities⁵. These perks make it a great place for people looking to buy a home.

Seller's vs Buyer's Market

In Madison, NJ, sellers are in a great spot right now. Home prices have gone up by 3.6% from last year⁵. With homes selling fast, sellers have the upper hand. Madison has lots of different homes and good schools¹. This makes it really appealing, especially for families.

Market Trends Over the Past Year

Madison, NJ's real estate has been growing strong. Home prices went up 3.6%, showing a healthy market⁵. Good transport options like the New Jersey Transit make Madison a good choice¹. Its unique houses and history also draw people in.

Median Home Prices in Madison, NJ

The current median home price in Madison, NJ is around $937,200. This shows Madison is one of the most affluent areas in both New Jersey and the nation². Over the past year, the average home value in Madison increased by 3.6%, hitting $906,500².

Factors Influencing Home Prices

Many factors affect real estate prices in Madison, NJ. The economy's health, low number of homes available, and what buyers want mainly drive the prices. About 64.27% of homes in Madison are single-family detached houses². This meets a big demand for spacious living spaces. Also, the average rent in Madison is $4,027 a month. This influences house prices as people decide between renting and buying².

Comparison to Nearby Cities

Looking at Madison and its neighboring cities, one notices Madison's unique price trend. Cities close by like Chatham Township and Florham Park also have high home prices. But Madison stands out. Around 20% of houses in Madison are priced between $520,001 and $1.3 million². Moreover, Madison has a variety of homes, from garden apartments to luxury houses, not often found in other cities¹.

Madison is about 26 miles from Manhattan, which makes it appealing for people who commute¹. The town is also rich in history and culture with over 50 buildings on state and national registers and hosts many festivals every year¹. These features keep Madison’s home values strong. They showcase the positive trend in the local and broader markets. Explore more data about Madison, NJ.

Home Inventory and Availability in Madison, NJ

It's very important to know about housing inventory in Madison NJ if you're buying or selling. Lately, there's been a 7.1% jump in homes for sale⁶. This means more choices for people looking to buy a home.

Homes for Sale by Bedroom Count

In Madison, NJ, you can find all sorts of homes, from small two-bedrooms to large five-bedrooms. The number of big homes with five or more bedrooms is going up⁶. This shows that more people now want bigger homes with lots of space.

Impact of Inventory on Market Trends

Changes in inventory levels can really affect the real estate market. For example, a lot of homes for sale can lead to better prices for buyers. Right now, there's a balance with a 4.4 months’ supply of homes⁷.

But, bigger homes might sell faster. Inventory levels not only change prices but also how quickly homes are sold. For more information, check out this real estate market report from Daily Record⁶.

New Listings and Market Forecast in Madison, NJ

The real estate outlook for Madison, NJ, shows a strong market for sellers. This trend is expected to last until mid-2024. Buyers will see many options, from garden apartments to high-end homes. Madison's easy access to key highways and the NJ Transit station makes it a great choice for home seekers¹.

Madison is also known for its parks and public spaces, totaling over 100 acres¹. The market will stay lively with a regular flow of new listings. Whether you're looking for a home in the Hill or Orchard sections, there's something for everyone¹.

Those interested can find new listings against Madison's cultural and historic scenery¹. Over 50 buildings are on the state and national historic registers. The stable market outlook is driven by Madison's community features and transport options.

To learn about Madison's housing choices and community life, check out the real estate market overview. It offers a detailed view of what makes Madison unique¹.

Price Trends by Home Size and Type in Madison, NJ

In Madison, NJ, there's a clear pattern in how home prices change based on size and type. Market analysis shows that bigger homes are getting more valuable. More people want bigger homes now. This trend is seen in local rates and in other places too⁸.

Madison's home prices change by about 1.34% every year. This shows the market is doing well⁹. Homes here cost about $345.40 per square foot. This makes Madison competitive in the wider property market⁹.

Homes with three, four, or five bedrooms are a big part of this price change. Compared to other places, Madison's prices changed by 9.07% because of this. Also, more than 93% of metro markets have seen prices go up. And, mortgage rates are between 6.60% and 6.94%¹⁰.

Looking at different types of properties, Madison has a mix. Single-family homes are most common. The trend towards new building and higher appreciation rates shows a growing interest in big homes for families⁸.

The price trends in Madison, NJ show a detailed market. Home values are closely tied to what buyers want. This info helps investors and homebuyers make smart choices. Madison is key in the regional housing scene because of its varied growth rates and types of homes.

Days on Market for Homes in Madison, NJ

Knowing how long homes take to sell in Madison, NJ, offers key insights for buyers and sellers. Recent times have seen big shifts in how quickly homes are sold there. In August, the number of new homes for sale jumped by 53.8% from the previous year¹¹. This change plays a big role in the local housing market, influencing how long properties stay for sale.

Madison is known for its top-notch public schools, attracting many families¹². These excellent schools increase homes' demand, making them sell faster¹². Also, Madison's lower property taxes compared to nearby Essex County make it more attractive, which helps homes sell quicker¹².

Being close to New York City makes Madison appealing too. The 47-minute train ride to Midtown Manhattan¹² and the 50-minute express train option¹² draw in working professionals. This convenience boosts the pace at which homes are sold in Madison.

Looking at these aspects, it's clear Madison's housing market is vibrant and competitive. This shows how important it is to know what influences the speed of home sales in this lively area.

Historical Housing Data

Image by Jared Kofsky/Placenj.com, licensed under CC BY-SA 3.0

The Madison NJ housing market history is both interesting and informative. By looking at historical housing data, we learn about the real estate trends in Madison. These trends tell us how property values have changed (Madison NJ housing market history). We compare the market at different times, seeing how big economic events have changed things.

Comparative Analysis Over the Years

Madison's real estate trends have shifted over the years. Looking at housing data, we see price changes in different areas. For example, Madison, WI's median sale price was $345.40, showing prices have gone up⁹. But Atlantic City-Hammonton, NJ, had a slower increase, with prices at $260.41⁹. Madison, NJ's real estate trends reflect its own economy and the wider market.

Impact of Economic Events on Market

Economic events have a big effect on Madison's property values. Changes in interest rates and local job growth change the market. Madison's market reacts to the country's economic lows and local boosts differently. This is evident when we compare it to places like Bakersfield, CA, and Jacksonville, FL, with their own price changes⁹. Madison also benefits from being close to good transport and local amenities, like the Mid-Town Direct rail line and Newark Airport. This helps keep property values stable and the market strong¹³.

Housing Demand and Buyer Behavior in Madison, NJ

In Madison, NJ, the housing market is booming. A huge 81.8% of homes sold lately went for more than their listed prices. This shows buyers are really competing and hints at what might happen next in Madison’s market.

People looking to buy homes in Madison are making decisions fast. They want to snap up properties quickly, often leading to bidding wars. This eagerness matches what’s happening across the U.S. For example, home prices nationwide have jumped a lot over the years. Cities like San Francisco, Seattle, and New York have seen big price rises too¹⁴.

In 2024, New Jersey’s housing market might hit some bumps. Experts worry about places like Essex and Union counties. There, mortgages are big compared to what homes are worth, and joblessness is a concern too¹⁵.

Yet, Madison’s market has been tough. It stayed steady through recent rough times. Still, the real test might come in spring. That’s when more people look to buy, and demand in Madison goes up¹⁵.

Knowing all about buyer trends in Madison and overall behavior can help people make smarter choices. It's clear that what happens in the economy affects Madison’s buyers and the competition in its housing market.

Insurance and Risk Factors in Madison, NJ

It's important for homeowners in Madison, NJ, to understand insurance and risk factors. This is because severe weather events are happening more often. The right insurance can help lessen the financial blow of such events. This means property owners won't be left struggling.

Wind and Storm Risks

Madison, NJ, faces a big risk from wind and storm events. Winds could blow as hard as 91 mph in the next 30 years. Such winds can cause a lot of damage to properties. That's why it's key for homeowners to have good insurance coverage.

Places like California, New Jersey, and Illinois have lots of homes at high risk. In fact, one in 1,389 homes had foreclosure filings in Q3 2023¹⁶. For Madison, it's critical to know these risks. This helps in getting the right insurance coverage.

Insurance Considerations for Homeowners

Homeowners in Madison need to pick the right insurance. Their policies should cover things like wind and storm damage. They should also think about the overall housing market. In some places, housing costs take up more than a third of local wages¹⁷.

Sometimes, there's a higher jobless rate in areas at greatest risk. This was true for 17 out of 50 counties in November 2022¹⁷. That's why having an insurance plan that covers financial ups and downs is so important. Good policies will help keep homeowners safe from unexpected troubles.

Conclusion

Madison, NJ blends old charm with new comforts, appealing to both home buyers and investors. The housing outlook here is strong, backed by important factors discussed in this report.

Hill section, Dellwood, and Knollwood stand out with their valuable properties and luxury homes. The median sale price in Madison hit $700,000 in 2018, up 12% from 2016. This shows the town's booming real estate market¹⁸. Madison's safe streets and top-notch schools also draw in families, increasing demand¹⁸.

The town's easy reach to New York City and its historical train station make it more appealing¹⁹. With ongoing developments and property values climbing, Madison seals its spot as a top investment choice in Madison¹⁸. For more on Madison, NJ's real estate, check out Ark7's Blog ²⁰.

Investing in real estate can be very rewarding, but getting expert advice is key. Knowing the market well helps make smart choices that pay off well into the future.

FAQ

What are the current real estate market conditions in Madison, NJ?

Madison, NJ is a seller's market now. Home prices went up by 3.6% over the last year. The median price for homes is now $906,500.

Also, the variety of homes available has increased by 7.1%.

How do home prices in Madison compare to nearby cities?

In nearby cities like Chatham Township and Florham Park, Madison's 3.6% price hike is modest. Yet, it shows the market is doing well. Prices in Madison are competitive with these places.

What factors are influencing home prices in Madison, NJ?

Several things impact home prices in Madison. These include the town's economy, available homes, and what buyers want. The town's economic strength and its desirable amenities boost property values.

What is the current demand for housing in Madison, NJ?

There's a strong demand for homes in Madison. About 81.8% of homes sell for more than their listed price.

Larger homes, especially those with five or more bedrooms, are highly sought after.

What is the projected real estate market trend for Madison, NJ?

The Madison real estate market looks to stay as a seller's market. We expect to see more new listings by June 30, 2024. This means buyers will have plenty of options.

How does inventory impact the real estate market in Madison?

The 7.1% rise in available homes has a big effect on the market. With more homes of different types and sizes up for sale, the market remains vibrant. Homes are selling fast.

What are the major risk factors for homeowners in Madison, NJ?

Homeowners in Madison face risks from wind and storms. Winds could reach up to 91 mph in the next 30 years.

It's important for homeowners to check their insurance and plan for these risks.

What are common insurance considerations for homeowners in Madison?

In Madison, getting the right insurance is crucial because of wind and storms. Homeowners should talk to licensed experts to find the best insurance and ways to reduce risks.

How has the historical housing data shaped the current market in Madison?

The history of housing in Madison shows how big events like changes in interest rates and job growth affect the market. These changes have a major impact on current home values and market trends.