If you are looking at selling, you have to have a place to go.
Everyone's circumstances are different and despite high prices, it has to make sense to make the move. I have spent a lot of time looking and talking about the single-family residential home market however this week I am specifically into the condo market and how it’s faired.
People are cashing out of their houses one way you can win is to downsize to either smaller property. Generally speaking if the overall market increases by 15% increase the actual value gain you receive on $1 Million is double what the 15% increase is on a $500,000 condo.
So far this year the condo market has seen 1,249 sales up until this point. For comparison in 2016, the total amount of condo sales for the year was 1,620. In a couple of months pending any drastic changes, the total amount of sales will surpass the previous record year of 2016.
However, the most interesting fact on the condo market is the total overall values that have sold. Currently, in 2021 the total condo values that have sold is $534,353,512. The next highest year was actually 2017 where the total volume in sales was $533,754,202 on 1,605 total sales.
As with residential homes the average condo sale price has taken a substantial jump in the last 18 months. In 2017 the average sale price was $329,976, in 2021 right now it is currently sitting at $423,506. Close to $100k increase in 5 years, compared to what the values were last year the average sale price was $361,808. It is incredible to think that a year ago condo prices were $60,000 cheaper on average than what they are today.
There is a quote out there that this reminds me of from Ray Brown "The best time to buy a house is always five years ago" I think this holds true after seeing these increases.
Normally when you buy and sell in the same market for similar property types and price range you end up Balancing out. 15% market increase on $1 million on your sale and purchase equal the same amount.
When you were looking at moving up in properties the price increase on your purchase will be a bigger hit than what you could’ve got it for last year however you are also getting less for what your home was worth a year ago, that being said what we are seeing is making up some of the difference In today’s market is the low-interest rates that are allowing people to bump up their price range and still maintain relatively the same amount of payments.
When markets do increase the real winners in the equation are generally people that move down in price point normally this is downsizers looking for a smaller house, townhome or condo.
Have a great week and feel free to reach out if there is ever anything I can do for you!