Downtown Madison Condo Market

When you're green you're growing, when ripe you rot.

Years of experience is trumped by insight and attitude. Heidi Tiefenthaler is one of Madison's up and coming Realtors. She's an entertaining writer with a savvy business mind and exhuberance of youth. I invited Heidi to write about her niche to share on this site. Follow Heidi at www.renewshub.blogspot.com

Here you go! My take on the current downtown condo market and why it isn't as bad as people say it is - as long as you are in the "right" building.

I was out with a buyer who is considering moving to downtown Madison. We toured condos at Union Transfer, 4th Ward Lofts, 100 Wisconsin Avenue and The Marina, all the while being treated to views of tree-lined streets and both lakes. Our hunting complete for the day, we headed over to Fromagination on the Capitol Square to enjoy wine and cheese. My buyer looked at me and said dreamily, “Who could say no to this?” Having lived downtown my entire life, I could only heartily agree with her.

Yet there are many out there who believe that the downtown condo market is in trouble. Is this true? Well….yes. But before you get ready to pack up and head for the ‘burbs, let me tell you not only why the market is in trouble, but also why that should not stop you from buying in the heart of Madison.

A few years ago during the housing boom, local real estate developers decided to capitalize on the competitive downtown condo market by putting up high rises. In what used to be a market filled mainly with luxury condos in exclusive buildings, downtown soon found itself host to “affordable” (to be kind) units. Unfortunately, the developers did not anticipate the downturn in the real estate market as a whole, and now the downtown condo market is flooded with brand new construction with not nearly as many buyers as needed.

So yes, the downtown condo market is in trouble….but not all condos should be included in that dire statement. Condos listed in smaller developments and those that are in excellently constructed buildings are consistently being sold with fewer days on the market and with a better sales to list price ratio (upwards of 97%). So why are they selling, but not the high rises? Simple: people want to buy homes, not apartments being dressed up as condos.

With new, cheaply built units flooding the market, those who bought early and are trying to sell now find their resales in competition with brand new construction, not to mention all of the other cookie cutter resales on the market. So does that mean you should avoid downtown? Absolutely not! There will always be people interested in downtown condos. However, to keep your investment safe, stick with buildings that have a history of appreciation and unique units, and avoid anything that makes you feel like you’re living in an ant farm.

Heidi Tiefenthaler is a Realtor with Restaino & Associates who specializes in the downtown condo market. You can generally find her at her downtown office on Wilson St., The Union, or The Old Fashioned for lunch. E-mail: heidit@restainohomes.com.