Q3 Market Analysis is Out! – Market Update 10/21/2022

Ahhh Autumn! Another week in paradise! We have been enjoying all of the amazing things that fall brings: the refreshing weather, mostly locals on our trails, the slower pace allowing for more time with our clients and families, the breathtaking colors. So much to be thankful for heading into the season of gratitude.

 

If you are considering making a move there is no better time than fall to do it:

 

I get calls almost every day from people wanting to move to our state for the tax advantages. We are also seeing an increase in the amount of buyers needing to reinvest their profit from properties sold during the summer buying season. These buyers have urgency as they only have 45 days to designate potential properties for purchase and 180 to make the purchase in order to avoid paying capital gains tax.

 

People are typically not home shopping out of curiosity during the fall and winter months like they are when the weather is warm. Also the weather can be a motivation as buyers typically do not want to be moving when the snow falls or during the holidays. Buyers in the fall and winter months are usually motivated and ready to make a move.

 

Not only is fall typically the lowest inventory season but this is compounded with the already low inventory we have had post COVID. As you can see from the graphs below we have had consistently low inventory, which is why our home prices are holding compared to other areas in the country with more inventory. Our price per square foot for condos has increased by 11% and 7% for homes since last year. Price is ultimately dictated by supply and demand. Not only does this affect pricing but buyers simply do not have much to choose from so median days on the market are starting to drop off. We only have 31 condos and 45 homes currently listed so buyers are left with only a few choices in their preferred area and price range. This is a huge seller’s advantage.

 

We have an influx of buyers at this time of year looking for year-end tax breaks. Buyers can deduct mortgage interest, property taxes, and interest costs of the loan if the sale closes before the end of the year. Investors know that now is the time to make a move to avoid getting stuck with an excessive tax bill at the end of the year. We’ve gone over some of the tax advantages to buying investment properties in the past and we will go into more as we come to the close of 2022.

 

According to Realtor.com, 50% of home sales nationally happen in the summer months. In the Fall lenders process fewer applications and our service professionals are more accessible. Sellers have an opportunity to stand out with especially motivated buyers, among very few active listings while home prices are still holding firm.

 

 

 

We had no new condos and 1 new home come onto the market this week. We currently have 31 active condos ranging from $420,000 to $2,995,000; the median condo price is $798,000. We currently have 45 active homes on the East Shore ranging from $1,025,000 to $64,500,000 with the median price of $2,899,000 . Here’s a year-to-date local update:

 

Total Sales YTD:
Condos: 77 (↓10% YOY) | Homes: 78 (↓42% YOY)

 

The Median Sales Price:
Condos: $694,500 (↓2% YOY) | Homes: $1,557,500 (↑4% YOY)

 

Number of Sales Over $1 Million:
Condos: 12 = 21% (↑7% YOY) | Homes: 65 = 82% (↑7% YOY)

 

Highest Priced Sale:
Condos: $5,665,500 (↓5% YOY) | Homes: $32,000,000 (↑52% YOY)

 

Median Price Per Square Foot:
Condos: $595.70 (↑11% YOY) | Homes: $648.87 (↑7% YOY)

 

Median Days on the Market:
Condos: 73 (↑38% YOY) | Homes: 75 (↑7% YOY)

 

List to Sell Price:
Condos: 97% (↓6% YOY) | Homes: 97% (↓2% YOY)

 

Price Reductions this Week:
Condos: 1 | Homes: 1

 

If someone you care about needs guidance or recommendations, please share our contact information as we are honored to be able to help! If you would like to receive our in-depth market update or would like an evaluation of your property’s value we would love to hear from you! We’ve put together some information below that we think you’ll find useful. If you have anything you want to share with our community please let us know so that it can be included in future newsletters.