The latest version of the Condo Insider: First Half of 2017 Report
By Beth Mandal Tyson
To say the least, for us it’s been a hot, wet summer selling season for the beachfront condos. I have been very busy showing our market off on HGTV’s Beachfront Bargain Hunt, welcoming newcomers, handling offers and closing transactions! Now, it’s time to reflect on the activities for the first half of this year. Let’s get transparent with the beachfront condo market between the months of January through June 2017. This report covers current inventory as well as what has sold in the first 6 months for each building that makes up the Biloxi/Gulfport beachfront high rise condos. I’ve included any relevant statistic that reflects our market.
First, let’s go through the overall averages:
As of August 15, 2017, there are 45 units on the market. That is a 9 month supply of inventory based on the current rate of sales with the average asking price of $297,100. The average price per square foot is $195. There have been 30 units sold in the first half of 2017 verses 38 units sold in the first half of 2016. The average selling price in 2017 was $252,318 or $176 per square foot. The average selling price in 2016 was $242,928 or $171 per square foot. That is an average appreciation of 2.9%. I would note that units that have been upgraded in flooring, appliances, counter tops, cabinets, bath fixtures, window treatments, and furnishings average much higher selling prices.
Let’s look at the stats for the first 6 months of 2017 vs 2016 by building:
Sienna has the least number of units on the market with the shortest supply available. There are only 3 units currently on the market or 3.7% of the total building. That is only a 3.6 month supply. Of the 3 units on the market, two are 2 bedrooms, 2 baths and one is a 3 bedroom, 2 bath. The average asking price in Sienna today is $239,600 or $179 per square foot. Sienna’s average selling price per square foot has increased 7.2% with an average selling price per square foot of $179. The average for the same period in 2016 was $168 per square foot.
Ocean Club has also seen an increase of 7.6% in average price per square foot at $171. The average price per square foot in 2016 was $159. This increase was mainly due to the number of end units that have sold. The gorgeous end unit at Ocean Club with their wrap-around balconies and ceiling-to-floor walls of glass sold for an average of $202 per square foot. The best buy in the marketplace are the side units with an average price of $150 per square foot. There were 5 sales for the first half of 2017. There were 16 sales for this time period in 2016. 8.3% of the building, or 10 units, are on the market with an average price of $252,380 or $181 per square foot. This is a 12 month supply.
Legacy Towers sales have been very steady. The average selling price of a unit is flat at $240,318 with the selling price per square foot at $172. There’s virtually no change from 2016. The total number of units sold is 11
in 2017 versus 13 in 2016. Legacy offers the most variations in unit sizes and floor plans. The building’s exterior is undergoing a renovation as well as many owners have upgraded their units. This is all good news for Legacy Tower owners. There is an 8 month supply of inventory. That means 6.7% of the complex or 15 units, is on the market with an average price of $285,626 or $188 per square foot.
Sea Breeze has been active this year with 8 units sold at an average price of $258,875 and an average price per square foot of $179. With only 1 reported sale in our MLS in the first half of 2016, it’s hard to evaluate. The unit sold for $180 per square foot in 2016. There is currently about 10% of the building on the market, or 10 units, at an average price of $258,625 or $179 per square foot. That is equal to a 7.5 month supply.
Beau View has 10 units currently on the market with an average asking price of $242 per square foot. There has been only 1 sale in the first 6 months of 2017 at $205 per square foot. Looking back at 2016, there were a total of 5 sales between January and June. During this 2016 time frame, the average asking price per square foot in was $222 and the average selling price per square foot was $208. Based on this year’s rate of sales, there is a 5 year supply on the market. Beau view has restricted short-term rentals to a 1-month minimum, which is appealing to owner occupants.
In conclusion, the beachfront condo market in Biloxi and Gulfport is in an equilibrium state. Inventory is slightly higher than the demand for the units. Asking prices per square foot range from $155 to $277 with the median price per square foot of $186. The selling price per square foot range is between $150 and $209 with the median being $177. As an active broker specializing in beachfront condos, I am blown away at what a great buy we are here on the MS Gulf Coast. You cannot build these beautiful buildings for anywhere near our asking prices.
I am always educating buyers about the fact that these incredible deals on a 10-year-old beachfront condo can only be found here in Mississippi!
If you have any specific questions about our real estate market, please call or email me.
I’d love to help you.
All the best,