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Yes they are in really good condition. We thought that the number of injured players would affect them badly, but it seems that the injured players returned to the team and Real Madrid went through this process in the best way, partly with Bellingham's extra performance. They are still the biggest championship favorites.
Don't be too confident about Real Madrid even though they managed to occupy the top position at the moment. Real Madrid really relies on its young squad which may change shape as the competition progresses. Kross and Modric are increasingly marginalized because Ancelotti wants to get something more from his young players, but I believe Real Madrid will not be very consistent throughout the season if they only rely on young players. Real Madrid needs good balance in all positions, even if their current form is fine.
I want to look forward to what Real Madrid can do until the first half of this season is over. Currently, La Liga has only had 9 matches, meaning there are 9 other matches which could possibly change my views on Barcelona and Real Madrid this season.