Madison, IN Housing Market

Market Overview

Madison, IN presents as a moderate market, with a PropertyIQ Score of 69 out of 100. Top score drivers include 12-month home value momentum of 8.68%, 3-month momentum of 1.22%, a median of 65 days on market, and a 20.4% share of listings with a price cut. These metrics point to recent pricing strength without an overheated pace.

Compared with state benchmarks, Madison’s median home value of $242,991 is about $17,100 below the Indiana average of $260,095. Its rent index of $1,200 is notably above the state average of $1,062, while unemployment matches the state at 3.3%. Median household income is $64,577, about $7,380 below the state average of $71,957. This creates a mixed profile: lower home prices, stronger rents, but lower local incomes.

For-sale inventory is 118 homes, and the year-over-year change in median home value is -$3, essentially flat. Population growth data is not available. On balance, Madison is a moderate market with some momentum and signs of buyer negotiation.

Key Trends

First, price momentum is positive but measured. The 12-month home value momentum of 8.68% and 3-month momentum of 1.22% are top score drivers, but the median home value’s year-over-year change was -$3, effectively flat. Madison’s median home value remains below the state average.

Second, the for-sale market appears balanced. With 118 homes for sale, 65 median days on market, and 20.4% of listings with a price cut, sellers may need to price carefully. The price cut share shows a notable portion of sellers adjusting expectations.

Third, the rental market is a relative bright spot. Madison’s rent index of $1,200 is about 13% above the state average of $1,062, while local home values are below the state average. This may support rental demand and investor interest.

Fourth, affordability is constrained. Median household income of $64,577 is about 10.3% below the state average of $71,957, while median home value is about 6.6% below the state average. Incomes trail the state by slightly more than home prices. Unemployment is equal at 3.3%, but population growth is unavailable.

Who Is This Market For

Madison may suit first-time buyers seeking a lower purchase price relative to the state. The median home value of $242,991 is below Indiana’s $260,095, but local median household income of $64,577 is also below the state average, so budgets should be reviewed carefully. A 65-day median market time and 20.4% price cut share may provide negotiation room.

Rental-focused investors may find Madison attractive. The rent index of $1,200 stands above Indiana’s average of $1,062, while the median home value is below the state average. That relative spread suggests rental demand is stronger than the state norm, although no cap rate or cash-flow data is provided.

Move-up buyers may find less momentum to rely on. The year-over-year median home value change of -$3 is essentially flat, and population growth data is not available. Still, the positive 12-month and 3-month momentum indicators suggest the market is not declining aggressively.

Outlook

The near-term outlook is for stability rather than rapid acceleration or decline. Positive 12-month and 3-month home value momentum suggests underlying pricing support, but the -$3 year-over-year median home value change and 20.4% price cut share indicate sellers still face resistance. With 118 homes for sale and 65 median days on market, the market appears balanced. The rent index of $1,200 above the state average may continue to attract renters and investors, while unemployment of 3.3% supports local economic stability. The main unknown is population growth, which is unavailable, so long-term demand cannot be fully assessed. Overall, the numbers support a measured market with modest positives and realistic pricing.