2016 has gotten off to a slower start than previous years with April condo re-sales at 20 units. The year-to-date average for the first four months of the year for 2013 through 2015 has been 74 units; in 2016 that number was only 58.
Let’s take a closer look at the results in oceanfront condominium re-sales for the first four months of 2016 on Singer Island:
- There have been 58 condo re-sales on Singer Island through April 2016. The sold prices averaged 92.8% of list price.
- Year-to-date 60% of the condo re-sales were under $500K, with only 14% being in the $1 million plus range.
- The average Days-on-Market (DOM) for the condos through April stood at 109 (approx. 3.6 months).
- There were no short sales in April; as well as, none year-to-date.
- The highest re-sale in April was Ritz Carlton Residence 2402A for $3,350,000; and the least expensive sale was Phoenix Towers A-2B at $259,000.
- As of the end of April, condo inventory has increased to 195 units.
- Price per square foot of the older condos (built 1969-1989) decreased to $298; and the price per square foot of the newer condos (built 2003-2008) increased to $615 through April 2016.
Looking Back at Season
As the Season draws to a close, it is a good time to reflect over the last six months to see how well the real estate market has performed.
In the last six months there has been 94 oceanfront condo re-sales on Singer Island, compared to 115 sales the previous 6 months (off-season). Almost two thirds (63%) of the re-sales were $500K or less. The $1 million plus range (newer condos) count for 17% of the sales.
Relating this to the active condo inventory shows a decrease in the $500K and under range with the inventory at 45% compared to sold at 63%. In contrast, the $1M plus range shows inventory at 27% verse sold at 17%.
The overall inventory of active oceanfront condo listings has increased 5% since the first of the year and is holding steady at approximately 195.
In summary, we see the older condos starting to show stronger sales and support the news articles about an active real estate market, while the newer, upper tier units are lagging the overall averages.
4 Housing Predictions for the Rest of 2016
According to Freddie Mac’s April outlook, the housing market will maintain its momentum in 2016 and help fuel the economy. This is despite the slower than expected economic growth in the 1st quarter of the year.
“We’ve revised down our forecast for economic growth to reflect the recent data for the first quarter, but our outlook for the balance of the year remains modestly optimistic for the economy,” says Sean Becketti, Freddie Mac’s chief economist. “However, we maintain our positive view on housing. In fact, the declines in long-term interest rates that accompanied much of the recent news should increase mortgage market activity, particularly refinance.”
Freddie Mac predicts for the remainder of 2016;
- Employment will continue to improve driving wage gains modestly, making housing more accessible.
- Increase in mortgage originations; estimate for 2016 up by $50 billion to $1.7 trillion as a result of declining mortgage rates boosting refinance activity.
- Mortgage rates will continue at historic lows. The 30-year fixed rate mortgage averaged 3.7 percent for the first quarter. After lowering the forecast for subsequent quarters by a tenth of a percent, expect rates to average 4 percent in 2016.
- Freddie Mac researchers predict home prices will rise by 4.8 in 2016 and by another 3.5 percent in 2017. These rising home prices will lead home owners to see more equity gains.
As always, time will tell.
Our Market Update provides detailed information regarding condos newly listed, pending and sold on Singer Island for the current month.
Enjoy this information prepared just for you!
CALL us today if you are thinking about selling or buying! Your referral is our best compliment!
We are hopeful for another banner year for the Walker Real Estate Group. As the #1 Sales Team on Singer Island, providing our customers a true concierge experience has been a major factor in our success. Trust, integrity and knowledge of the market is our number one priority.
Here is what our customers are saying:
“We want to express our appreciation for the outstanding service provided by Jim and Jeannie Walker during the listing and sale of our home. From the inception of our listing, they provided full support for every aspect of the process, ranging from their technology capability in providing e-sign functionality to enable remote electronic signing of documents to the use of a professional photographer who took amazing pictures of our home-they almost made us want to buy it all over again. Jim and Jeannie Walker are the consummate professionals, and we would recommend them most highly…”