Almost every metric points in the right direction for the housing market in Madison, which is a positive sign. Even though home prices are going up at a historically high rate, the growth of the local real estate market is still being driven by how affordable homes are. In fact, Madison’s real estate market is cheaper than most others in the country.
When it comes to meeting their monthly mortgage responsibilities, homeowners in Madison have become used to allocating around 9.8% of their income. However, the typical homeowner throughout the nation devotes more than 15% of their salary to the same thing.
Because prices are low in Madison, it seems like a good idea to invest in real estate there. Having said that, one of the best places to locate houses at lower prices is in markets that are currently in trouble.
According to RealtyTrac, the property market in Madison has more than 377 properties that are in some stage of the foreclosure process. This means that the properties are either in default, have been seized by the bank, or are in the process of being prepared for auction. Despite the fact that the number of foreclosed homes in Madison has decreased by 33% when compared to the previous year, there are still a lot of good bargains to be had.
Foreclosures = Investment Opportunities
The savings that are available on the distressed market should inspire those who are interested in investing in real estate in the Madison area. Homes that are not in difficulty are selling for an average of $199,800 right now. Properties that are in a state of distress, on the other hand, often sell for an average of $152,500. That works up to an average savings of 24%, or $47,300 per home, depending on how you look at it.
Because they make up the bulk of the already distressed market (56.2%), foreclosures that are now up for auction in Madison will be profitable for real estate investors. This figure is lower than it was this time last year by more than 22%. Pre-foreclosures account for 29.7% of Madison’s foreclosures, making them the city’s second most common kind of property loss. All of the foreclosed homes that are still on the market are held by banks. Each of these areas should have a lot going on when it comes to investing in real estate in Madison.
In the past few years, the growth of the economy has helped the real estate market in Madison a lot. Zillow’s Market Health Index gives the city’s metropolitan real estate market a score of 9.1 out of 10, which means it is in great shape. Because of the strength of the property market in Madison, the percentage of homes with a negative equity position is at an all-time low. Only 10.8% of the residences in the region are in the red, which is far lower than the national average of 16.9%.
Madison, Wisconsin, has, for all intents and purposes, grabbed the recovery by the horns and ran with it. Since the home market in this area is one of the hottest in the nation, real estate investment in the region should continue to profit from the success of the housing market in this area.