Hey Guys, I’m Donna Taylor, owner/broker of Taylor Realty Group and resident of Madison, MS for over 20 years, here today to tell inquiring minds what the Madison MS Real Estate Market is Like in May of 2022. Keep Reading or just watch my YouTube Video
So, every single day, I have someone who knows what I do, ask me, wow, you must be busy, this is a great market to be a real estate agent, right? They are surprised when I say, no, it actually sucks for most agents right now. Imagine their surprise and the look on their face when I say that! But, it’s true. So, I explain to them, it’s awesome if you’re a seller, but about half of my transactions I represent the buyer side, and let me tell you, honestly, it’s not a great time to be a buyer. Today, in Madison, MS there are 76 active listings of homes for sale in 39110…that’s the Madison zip code, that’s right, there’s only one zip code in Madison! Those prices range from around $200k up to $2.4 million. The average active list price is around $743k, but the median list price of active listings is around $600k. This honestly is higher than normal only because, the active listings go under contract so fast, it skews the number. Most homes in Madison go under contract withing 2-3 days with multiple offers of course! The average closed price for Madison which is $428k over the last 6 months. Right now, there are 184 pending listings in Madison where the avg is $450k. The Average closed home price in Madison for the last 6 months is up from a year ago, where the average closed price was around $385k. That’s an increase of 11%. That’s not as high as the national average, but it’s definitely higher than we are used to seeing in Central MS.
So, back to my answer of why my job is so hard right now. As you’ve probably heard, there’s an inventory shortage. The absorption rate in Madison is currently one month, this simply means that if there were no new listings and sales continued at the current rate, in 30 days, there would be zero houses for sale. In a “normal” market, the absorption rate should be around 6 months. So, what’s the big deal you ask? Well when I’m working with a buyer that wants to put in an offer, and the listing agent calls me and says, hey, you’re one of 10 offers, can you see why this is hard?!! Can you understand why many buyers are suffering from “buyer fatigue”, trust me, it’s a thing! So, how do you "win" (geez I hate to even use that term)…a bidding war in this market. Well, there are a few ways, but some of them I hate to even suggest. Because many times it takes making an offer with an appraisal gap coverage, or waiving inspections, none of those things I would advise a buyer to do, but unfortunately, in this market, that’s what it takes. If you don’t have the cash to make that happen, and you’ve got to find a home in Madison MS quickly, there is always new construction options. I’ve noticed lately that the new construction listing days on market, seem to be slowing a bit. And with interest rates on the rise, I’m hopeful the market will start to slow a little. It sounds crazy that a real estate agent wants the market to slow down, but remember, we need inventory. I’m not a fortune teller, but I do expect the market to stabilize a bit after the summer rush. So, if you’re even thinking about buying or selling anytime in the next 6 months…go ahead and reach out to your Realtor now (or call or text me if you don’t have an agent)…it’s time to get your ducks in a row and start looking for the house that checks maybe 8 out of 10 of your boxes, because you’re going to have to go in strong and jump on that dream house well into the rest of this year. Gone are the days of calling your agent and saying, oh what can you show me in my price range, and I’m able to show you 10 houses! If you called me right now, this very second and told me you’re pre approved for $400k and what can I show you in Madison between $350k and $400k, there are only 4 houses to show you..and 3 of those are new construction and probably not even to be occupied in the next 45 days! So, trust me when I say, let’s go ahead and get the ball rolling. It will likely take you 4-6 months to get into a home in this market!
And, in case this is one of the first You Tube videos of mine that you’re watching and you want to see what makes Madison MS so great, (insert link to that video) be sure to check out the video I did about why Madison is consistently rated as one of the top cities to live in! In that video I go into detail describing why Madison gets an A+ rating on NICHE.com for our schools, safety, and all the things that make a city a great place to live.
If you’re thinking about moving to Madison, check out my website at www.taylorgroupms.com, it has all the local MLS listings that is updated every 10 minutes. You can set up a saved search based on your dream home criteria and you’ll get an email every morning if something hits our MLS that fits your wants! It might take a little longer than you want to find that perfect home, but it can happen! I have a few buyers under contract right now…some it took 6 months to get there and others just a few days! So, hang in there!!