Real estate analysts forecast a slower start to 2016 compared to 2015. Condo closings for the first two months of 2016 are off 2015 numbers by 52% in both transactions and sales volume. New listings for the year are down by 15% from this time last year. Our condo inventory on Singer Island exceeded 200 units for the first time since April 2012. The real estate market has clearly slowed down.
On a more positive note, looking back on 2015, we saw a similar slow start to the year, yet 2015 ended with condo sales volume double the volume from the beginning of the year. 2016 may well follow that trend.
Let’s take a closer look at the results in condominium re-sales on Singer Island for the first two months of 2016:
- There have been only 14 condo re-sales on Singer Island through February 2016. The sold prices averaged 94.5% of list price.
- Year-to-date 64% of the condo re-sales were under $500K, with only one sale being in the $1 million plus range.
- The average Days-On-Market (DOM) for the older condos through February stood at 92 (approx. 3 months of inventory); and the newer condo was 253 days (8 months) on market.
- There were no short sales in February.
- The highest re-sale in February was Tiara 36A for $665,000; and the least expensive sale was Aquarius 1103 at $245,000.
- As of the end of February, condo inventory increased to 214 units; the first time over the 200 mark since April 2012.
- Price per square foot of the older condos (built 1969-1989) decreased to $317; and the price per square foot of the newer condos (built 2003-2008) remained at $557 through February 2016.
What will 2016 Bring to the Real Estate Market?
Condominium sales have slowed in Palm Beach Country as evidenced through reported sales by the Board of Realtors. In January there were only 8 reported condominium sales on Singer Island, nine less from this time last January 2015. February 2016 sales numbers were also on the slim side at 6 compared to February 2015 at 12.
Year over year sales of existing condos fell 11 percent in Palm Beach County, 6 percent in Broward and 10 percent in Miami-Dade, according to figures from local Realtor boards, median prices increased in all three counties despite the sales declines.
Foreign buyers are not as active due to the exchange rate and concerns about worldwide economies. We normally have a strong Canadian presence in the condo buying market and find that with a 34% premium due to the exchange rate, Canadians are thinking twice before making the plunge into the US condo market.
The slowdown could be the result of several circumstances:
- The volatile stock market
- The highly unpredictable presidential election year.
- The prospect of a new bunch of condominium projects coming on the scene in the next few years. Singer Island already has one new condominium project under way with Vista Blue, located between the Marriott Resort and the Hilton Hotel; starting at $1.6 million. Kolter is undergoing the approval process for 5000 North Ocean, a 48-unit boutique condo planned within the next few years. A two-tower complex called Seas Palm Beaches Resort will occupy the prior Amrit location next to the Tiara on Singer Island.
Today we are seeing more of the “end users” and fewer speculator and investors. The market seems to returning to a more normalcy after several years of volatility.
Our Market Update provides detailed information regarding condos newly listed, pending and sold on Singer Island for the current month.
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We are hopeful for another banner year for the Walker Real Estate Group; as the #1 Sales Team on Singer Island, our goal is to provide our customers a true concierge experience in all their real estate transactions. Trust, integrity and knowledge of the market are our number one priority.