Madison Wisconsin Real Estate Market Update - December 2025
Your December 2025 Madison housing market update: Seller's market with 1.28 months of inventory and a $434,100 median price — what that means for you below.
Madison's November 2025 housing market showed a median sale price of $434,100 (up 8.4% year-over-year) with homes selling in 14 days, while the market maintains 1.28 months of supply in a strong seller's market environment.
Key Takeaways - December 2025
- Median home price: $434,100 (+8.4% year-over-year)
- Homes sell fast: 14 days median time on market
- Market status: Strong seller's market (1.28 months supply)
- Limited inventory: Only 272 active listings available
- Best for buyers: Buyers should act quickly on well-priced homes in the $300k–$499k range, as inventory remains tight at 1.28 months supply despite 11.4% more new listings.
- Best for sellers: Sellers benefit from strong pricing power with median prices up 8.4% year-over-year, though homes are taking 4 days longer to sell than last November.
- Year-to-date: 2,390 sales with YTD median at $424,900 (+3.6% YoY)
📊 Mortgage Rate Update
Current 30-year rates are sitting around ~6%, and top forecasts from Fannie Mae and the Mortgage Bankers Association suggest this same general range will continue through 2026, with only modest improvement.
Nationally, NAR expects 2026 to be a "comeback year," with existing-home sales rebounding roughly 14% and home prices rising about 4%, driven by job growth and slowly easing rates.
Madison Wisconsin Housing Market Analysis – December 2025
This December 2025 report covers Madison sales data through Dec 1, 2025 (mostly November closings).
Quick Market Facts
Data source: South Central Wisconsin MLS . Data deemed reliable but not guaranteed.
Hyper-Local Market Overview
Price-strong but volume-light: Madison's late-2025 housing market stayed price-strong but volume-light, with the median sale price rising 8.4% to $434,100 even as closed sales dropped 21.6% year-over-year. The average sale price reached $480,627, showing some upper-end/luxury closings in the mix.
Tight seller's market persists: With just 1.28 months of inventory and a 14 days median DOM, Madison remains firmly in seller's market territory. This is well below the 4–6 month "balanced" range, continuing to favor sellers.
Year-to-date snapshot: From January through Dec 1, 2025, Madison recorded 2,390 sales (+0.8% YoY) with YTD median at $424,900 (+3.6% YoY) and YTD average at $479,743 (+4.9% YoY). New listings delivered: 2,881 (+3.9% YoY). Active listings at snapshot: 272, with 74 pending.
Madison Market Geography
Primary Coverage Area: Madison, Wisconsin (53703, 53704, 53705, 53711, 53713, 53714, 53715, 53716, 53717, 53718, 53719, 53726)
Extended Service Area: Greater Madison including downtown, near east side, west side, south Madison, and surrounding Dane County neighborhoods
School Districts: Madison Metropolitan School District, Middleton-Cross Plains Area School District
City Info: Learn more about Madison amenities
Current Market Conditions & Trends
- Seller's market dominance: At 1.28 months of supply, sellers maintain strong negotiating power. Balanced markets typically have 4–6 months of inventory.
- Strong price appreciation: Median price jumped 8.4% year-over-year to $434,100, showing continued demand in Madison's competitive housing market.
- Fewer transactions, higher values: Closed sales dropped 21.6% and total dollar volume declined 15.0%, showing that fewer buyers were successful even as values rose.
- Price per square foot steady: At $267 (+1.3% YoY), per-square-foot values continue climbing despite inventory constraints.
- Late-fall buyer leverage: Average sale-to-list at -0.79% means buyers, on average, Homes sold 0.79% under asking price in November, down 0.88 points from last year, indicating slightly more buyer leverage.
- New listings up: 117 new listings in November (+11.4% YoY), with more sellers came to market in November compared with last year, with 117 new listings up 11.4%.
- YTD median DOM: Just 8 days (+2 days YoY) confirms the overall fast market speed across the year.
Madison vs. Nearby Communities – Price Comparison
| Community | Median Price | Months Supply | Notes |
|---|---|---|---|
| Madison (53703-53726) | $434,100 | 1.28 mo | Strong seller's market |
| Sun Prairie (53590) | $425,000 | 1.5 mo | Competitive market |
| Middleton (53562) | $485,000 | 1.3 mo | Strong seller's market |
| Fitchburg (53711, 53719) | $430,000 | 1.4 mo | Strong seller's market |
| Verona (53593) | $544,900 | 1.6 mo | Seller's market |
*Madison data reflects Dec 1, 2025 snapshot from SCWMLS. Other community data from prior reports.
🔍 Ready to Find Your Madison Home?
Browse all active listings in Madison with real-time MLS data and exclusive insights
Inventory & Market Activity
- Active inventory: Just 272 homes available as of Dec 1, 2025 — extremely tight supply.
- Pending sales: 74 contracts in process, with median days until pending at 15 days.
- New listings November: 117 new listings (+11.4% YoY) — more sellers came to market in November compared with last year, with 117 new listings up 11.4%.
- New pendings November: 162 new accepted offers (-6.4% YoY), showing slightly softer buyer demand with new pendings down 6.4%.
- Year-to-date new listings: 2,881 total listings delivered (+3.9% YoY).
- Year-to-date new pendings: 2,471 (+1.4% YoY), showing buyer activity slightly ahead of last year with new pendings up 1.4%.
- Supply by price range: The $300k–$499k range accounts for 88 of 163 November sales and moves fastest at 10 days on market, while the $400k–$499k segment saw 47 homes sold with just 10 days on market.
Big Picture: What's Driving Madison's Market?
Madison's market remains tight due to a perfect storm of factors: limited new construction, low inventory, strong employment (Epic Systems, UW-Madison, state government), and steady population growth. Even with 30-year mortgage rates hovering near the mid-6% range and expected to stay close to current levels into 2026, qualified buyers continue to compete for limited inventory.
Integrity Homes' view: With 1.28 months of supply and +8.4% price growth, Madison is still a seller-leaning market, but late-fall conditions are giving motivated buyers a bit more negotiating room and time to act. Sellers who list now face minimal competition, while buyers need to be pre-approved, decisive, and ready to compete on well-priced homes—especially in the $300k–$499k range where supply is tightest.
Market Forecast & Buyer/Seller Recommendations
Madison Market Outlook
Expect continued seller's market conditions through late winter and into 2026. With 1.28 months of supply and 14 days median DOM, properly priced homes will continue to sell quickly. Nationally, NAR expects 2026 to be a "comeback year," with existing-home sales rebounding roughly 14% and home prices rising about 4%, driven by job growth and slowly easing rates.
What Sellers Need to Know
- Your window is now: With minimal competition (only 272 active listings) and +8.4% price growth, sellers who list in late-fall face fewer competing properties and strong demand.
- Price it right from day one: Even in a seller's market, the first two weeks matter most. Overpricing leads to stale listings that take longer to sell.
- Presentation drives premium: Professional photos, staging, and addressing visible maintenance issues can add thousands to your final sale price.
- Neighborhood matters: Madison is a community of distinct neighborhoods. Work with an agent who knows your micro-market's recent comparable sales.
- Expect quick decisions: With 14 days median DOM, qualified buyers are ready to move. Be prepared for showings and offers quickly after listing.
What Buyers Need to Know
- Pre-approval is mandatory: In a market with 1.28 months of supply, sellers won't entertain offers without strong financing proof. Explore available loan programs and assistance options to maximize your buying power.
- Late-fall advantage: November buyers secured In November 2025, homes in Madison sold on average 0.79% below asking price, compared to 0.09% above asking the prior year, a shift of 0.88 percentage points. This indicates buyers have gained modest negotiating power, though the market remains competitive with properties still moving in 14 days.
- Focus on the $300k–$499k range carefully: This is the most competitive segment with limited supply. Have your inspection contingency strategy ready.
- Expand your neighborhood search: Madison has diverse neighborhoods at various price points. Look beyond your first choice to find hidden gems.
- Work with a local expert: Madison's market is hyper-local. An agent who knows neighborhood nuances can identify opportunities before they hit the market.
- Veterans and military families: Take advantage of VA loan benefits with $0 down payment. Review our complete VA loan guide for Wisconsin-specific information.
Finding Your Perfect Madison Home
Working with Madison Real Estate Agents
Choosing the right real estate agent is crucial in Madison's competitive market. Look for agents who specialize in your target neighborhoods, have strong MLS access, and understand local market conditions. At Integrity Homes Wisconsin, we provide:
- Real-time MLS alerts for new listings matching your criteria
- Exclusive access to off-market properties and coming-soon listings
- Expert neighborhood knowledge and comparative market analysis
- Negotiation expertise in multiple-offer situations
- Special programs for veterans, first responders, teachers, and healthcare workers through Reward Our Heroes
Popular Home Features Madison Buyers Search For
Energy Efficiency & Smart Home Technology: Madison buyers increasingly prioritize energy-efficient features including high-efficiency furnaces, updated insulation, and smart thermostats. With Wisconsin's cold winters, homes with newer windows, efficient HVAC systems, and programmable climate controls command premium pricing and sell faster in the competitive $300k–$499k range.
Finished Basements & Additional Living Space: Extra living space remains highly desirable in Madison's tight market. Finished basements with egress windows, home offices, recreation rooms, or additional bedrooms add significant value, particularly for families seeking more space without moving up to the $500k+ price tier.
Updated Kitchens & Bathrooms: Modern kitchens with stainless appliances, granite or quartz countertops, and open layouts continue to drive buyer interest. Similarly, updated bathrooms with contemporary fixtures and tile work help homes stand out in a market where well-maintained properties sell in just 14 days.
Outdoor Living & Yards: Despite urban density, Madison buyers value outdoor space including decks, patios, fenced yards, and mature landscaping. Properties offering private outdoor entertaining areas or gardening space are particularly appealing to buyers relocating from neighboring suburbs or seeking work-life balance near downtown employment centers.
Best Online Platforms to Search Madison Homes
While Zillow and Realtor.com provide basic listings, the most accurate and up-to-date Madison home information comes from direct MLS access through local real estate professionals. Integrity Homes Wisconsin provides:
- Same-day MLS updates with no delay
- Accurate pricing and status
- Complete property history and detailed disclosures
- Neighborhood statistics and school boundary maps
- Ability to schedule showings directly through the platform
Frequently Asked Questions
For Home Buyers in Madison, WI
For Home Sellers in Madison, WI
Methodology & Update Log
- Metrics reflect SCWMLS data captured on/around Dec 1, 2025; late entries may revise prior month counts.
- Medians/averages exclude clear outliers; $/SqFt uses finished above-grade square footage.
- Year-to-date figures represent January 1 – Dec 1, 2025.
- Months of supply calculated as active listings divided by 12-month average monthly sales.
- Updated: — initial publish.