Is Madison, NJ 07940 a buyer’s or seller’s market?
Madison is a seller’s market. With about 0.7 months of supply and 78% of recent sales closing above the original list price, competing offers are common on well-priced homes. Buyers here often have a pre-approval in hand and a plan for the appraisal gap before touring.
#11 of 112 ZIP codes in Essex, Morris, Union, Sussex & Hunterdon, NJ, and #15 of 531 across all the markets we track.
Based on share sold above original list, sale-to-list ratio, months of supply and days on market for the 3 months ending August 31, 2026. How the heat score works
The Madison housing market right now
In the three months ending August 31, 2026, 78% of homes in Madison, NJ 07940 sold above their list price, the typical home went under contract in 16 days and there were 0.7 months of supply. Under four months of supply means sellers have the edge: expect competition for well-priced homes. That’s based on 47 home sales.
Compared with the same period a year earlier, the share selling over asking rose from 68%, homes sold about as fast and the median sale price fell 9% to $1,254,901. Overall, Madison is more competitive than a year ago, so tougher for buyers.
Within Morris County, homes here sell faster than in 74% of the county’s ZIP codes, and sell more often over asking than in 80%. On our competition score, Madison ranks #12 of 444 NJ ZIP codes with enough sales (score 98 out of 100).
Nearby, buyers who want less competition could look at Hibernia 07842 (0% sold over asking) or New Vernon 07976 (20% sold over asking), while Kenvil 07847 (100% sold over asking) and Mount Tabor 07878 (100% sold over asking) are even more competitive.
Run the numbers for 07940
Nearby markets
Boonton 07005Seller’s market $365 /sq ftBudd Lake 07828Seller’s market $325 /sq ftButler 07405Seller’s market $342 /sq ftCedar Knolls 07927Seller’s market $392 /sq ft Browse all markets →Towns like Madison nearby
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Questions about Madison real estate
Is Madison a buyer’s or seller’s market?
A seller’s market: there were 0.7 months of supply in Madison, NJ 07940 in the three months ending August 31, 2026. Under four months usually favors sellers, and more than six favors buyers.
How fast do homes sell in Madison?
The typical home went under contract in 16 days in the latest three months.
Do homes in Madison sell over asking?
78% of homes sold above their original list price, and the typical sale closed at 110.0% of the list price.
What are property taxes in Madison?
About 1.53% of a home’s value a year in Madison Boro, Morris County, or roughly $6,140 on a $400,000 home.
What is the median home price in Madison?
The median sale price was $1,254,901 in the three months ending August 31, 2026, about $609 per square foot.
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Market data describes housing activity only. Figures are rolling 3-month values from Redfin and may be revised. Methodology