Condo Insider 2016, First Edition
At the beginning of the year, my thoughts typically look towards the future. What does this year have in store for the real estate market? I guess it really starts by looking at how last year went and then deciding whether that is a sign of the future. So, let’s look at the condo sales for 2015.
In 2015, we had a 77% increase in the total sales! No one really predicted that kind of increase in demand for beach condos here on the MS Gulf Coast. The market jumped into gear in January 2015 and kept up the pace throughout the rest of the year. Of the 78 total sales, the highest price per square foot sold was $224.00 on an exceptional 4 bedroom unit at Beau View. Ocean Club had the most units sold during the year with a total of 27 units. Many of those sales were the remaining developer units, which all have now sold. Across all buildings, the average unit sold was a typical 2 bedroom, 2 bathroom unit for $168 per square foot. The 2015 average square footage price increased by only 3.5%, but it was held down by the developer units that sold below average prices.
As of January 2016, the inventory level was at a 7 month supply. All the developer units are now sold and the foreclosure and short sale market is gone. With the supply being at the lowest level in our condo market history, we are surely in a sellers market!
I believe in the not so distant future that condo developers will once again be looking at the MS Gulf Coast. We have the land available and a regional demand. More people are discovering our coast as a great second home and retirement location. Mississippi is easy living with lots of things to do and retirement income tax is free!
If my prediction is correct and developers start to build new high rise condominiums soon, what would the price for a new unit be possibly? I’ve been told that it would need to sell in the range of $350 – $400 per square foot. Now that’s a considerable price increase!
Have a great year!
2014 vs. 2015
|Total Sales ||44||78|
|Avg. Listing Price of Units Sold||$244,723||$270,716|
|Avg. Selling Price||$227,636||$255,971|
|Avg. Days on the Market||384||177|
Condo Sales For Each Quarter of 2015
|First Quarter||Second Quarter||Third Quarter||Forth Quarter|
|Average Listing Price of Units Sold||$255,538||$288,784||$276,153||276,838|
|Average Selling Price||$242,899||$274,126||$258,866||260,777|
|Average Days on the Market||145||161||176||159|
|# Foreclosure Sales||1||1||0||0|
Current Listing Information, First Edition 2016
|Beau View||Legacy Towers||Ocean Club||Pelican Cay||Sea Breeze||Sienna|
|# of Units on the Market||2||22||12||1||5||7|
|Average Size (square foot)||1,392||1,404||1,351||1,250||1,541||1,527|
|Average Days on Market||130||202||86||4||164||166|
|Average Price per Sq.ft.||$219||$188||$167||$176||$197||$184|