It could be that the worst is over for island real estate, that the bargain hunters are grabbing what they can and the bottom has been touched.
"Yes, the market has improved," says RE/MAX's Diana Beam. Her year-over-year comparison of the residential sales market shows business up 50% compared to this time last year.
- Homes under contract: up 36%
- Homes sold: up 50%
- Sold volume: $19.5 million, compared to $9.6 million ytd 2009
- Avg. sales price: $1.3 million vs. $953,000
However, before getting too excited about these numbers, one villa owner
pointed out that the comparisons are from a very low base.
One of the most interesting data points is this: "Percentage of sales price off listed price." Beam says in 2009, buyers were underbidding and buying at about 19% lower than the asking price. This year, the discount is 12%.
The number of condos sold this year compared to this same time past year, is up 25% (5 sold ytd 2010). The total dollar amount is up 9% ($2,2 million/$2,4 million). The average sales price is down 12%. This year the average sales price for a condo is $484,460.
- (Disclaimer: Diana Beam's RE/MAX Island Paradise Realty is an advertiser on the site)
2 thoughts on “Villa and condo sales recovering”
I think the prices still have a way to go before hitting bottom. When you see ads where the price has been reduced by over 40% and then it says that the seller is motivated in all caps, you know the market is very weak. There are short sale being advertised for several homes because people can’t afford them. When prices going up by 40% a year after year, at some point reality has to step in. Besides the real estate market here in the States is still in the dumpers no matter what the news is saying. Just wait until all the new income taxes hit next year. Even more people will be hurting and won’t be taking vacations.
Yep the tax increase payment will come out of vacation spending I am afraid. Time will tell and perhaps all it will do is keep the hoi polloi at home.