Madison property values decline for the first time in 35 years


An article written by Dean Mosiman and published in the April 16, 2010 Wisconsin State Journal (Madison's primary newspaper) reported a 3.1% decrease in local real estate property values, the first such decrease in 35 years. This is evidence of a widespread recession in the United States and it's toll on the local Madison area economy. But you know when you think about it, real estate is a long term investment for most people and while we may be more used to the daily ups and downs of things like the Dow Jones average real estate for most people should be considered more in the big picture, long term idea of investment. In looking at these reported facts, perhaps a more optimistic perspective of the Madison real estate market might be to view these recent developments from the perspective that for the past 34 out of 35 years Madison property values have either increased or remained neutral! That's truly a remarkable fact. And why is that? When one looks at the big picture of things, Madison has an historically very attractive employment picture, with relatively low unemployment. Madison's economy is generally not manufacturing based. Because of that fact, we don't typically have the big swings in the employment information like a City that is largely dependent upon a manufacturing based economy. Historically, Madison has enjoyed one of the lowest unemployment rates in Wisconsin and at times one of the lowest unemployment rates in the nation.

So, should you consider buying that Madison home when the paper says values are declining?
Consider that much of the local economy has its roots in State government, the University of Wisconsin, healthcare,insurance companies and typically those types of employment provide a more the stable local employment picture. In areas where people have jobs, people more likely to want to move to that area. And, that's certainly been the case in Madison and the Dane County area where more people are coming than are leaving. If you consider the additional quality of life issues such as the Madison area lakes, recreational considerations such as the quantity of biking trails in the area, The University of Wiscosin Arboretum, the exceptional learning environment provided by the University of Wisconsin and other quality schools in the area both in  public and parochial schools, a relatively low crime rate, the availability of varieties cultural programs, and Madison's  fairly diverse population, many of us continue to find Madison has got a lot going for it. It's a great place to live,learn,raise a family and enjoy life!

Madison typically enjoys a more stable and predictable real estate market. It is true that we haven't  had a lot of the  consistant double digit percentage property value increases like places in Florida, California, Las Vegas. But we also haven't had the large double digit decreases in property values either. For the year 2010, the property assessment decrease was 3.1% with single family homes decreasing 1.7%. Naturally, whenever there's a significant drop like that, some readjustment  is necessary. So, the Madison WI real estate market is still quite good in my opinion. When things recover on national basis, the Madison housing market I believe will thrive as its done in the past. When you think of things in those terms, this is a fantastic time to buy that Madison WI home!