The Condo Market’s average sales price has not moved in the past 5 months. The initial portion of 2019 tested the middle threshold of the Condo market current market cycle. After a successful defense, property values rose in September for the first time in over a year. That resulted in the market average rising to $673,328 in September 2019. January 2020 prices came average came in at $665,190.
Lower highs, and higher lows in pricing since September 2019 have created a divergent trend that needs to be resolved. A market cannot sustain itself inside of a 1% range, expect some volatile movement upcoming to the condo market. The Condo Market has remained 11% off the peak in pricing since the September data point.
Inventory is inextricably linked to the sale prices. Since the September data point the inventory broke out of the uptrend, which had pushed inventory to 6000. Simultaneously instigated the divergent trend in the price chart. After Septembers break to the uptrend the inventory seemed to be in free fall. The inventory bottom occurred in December with only 3025 active properties while January came in with 3390 active.
Now would be an excellent time to take advantage of the nominal inventory level for sellers. Why wait until the market is again flooded with listings. Just as Eitel Insights guided sellers to take advantage of the stress test mitigation in the detached market. Which resulted in the detached average price increasing by $163,000.
The current opportunity to sell at higher prices will not last, as the completion of many newly built building begins. The market will flood with new units for sale that will debilitate the resale market. Take advantage of the calm before the upcoming storm.
Sales have broken out of the aggressive uptrend that had been prevalent in the latter half of 2019. In January 2020 the total for the Condo market came in at 815 sales. The sales numbers are quite higher on a year over year basis, and likely at the lower third of the newly forming market cycle in the Condo sales chart.
Eitel Insights suggests that buyers hold off until the inventory levels return. Once the inventory returns you will see the competition amongst sellers intensify. Resulting in more negotiating power and an abundance of listings to enjoy perusing during the weekends.
The Days on Market for sales in January was 43 signalling a lower DOM than December, which is to be expected. Eitel Insights believes that that DOM will continue to lower as we head into the spring market. Properly priced listings will be purchased. Again our advice to sellers is to take advantage of the current absence of competition before the wave of listings ensues.
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