Just as we transition from winter coats to flip flops in the Spring, so too does the luxury real estate market from experiencing chilly, reluctant property viewers to fired up, eager property buyers. This week saw 29 transactions (9 condos / 20 single family homes), with an average list of $766,565 and average close of $749,955. Median list was $579,000 and median close was $575,000.
Some notable transactions this past week, 10724 Avoca Circle sold for $3,975,000, making it the 3rd transaction so far this Spring out of Martis Camp. Comparatively, by this time last Spring there were already 5 transactions on the books. My take? Although Martis Camp had a lot more action off the bat last Spring, several factors may be to blame for the slower start this time around. First, we must acknowledge the extreme Winter we had this year and its effects on consumers being able to physically drive up to view properties. Simply put, people couldn’t make it up as much as they’d like to, or when it was convenient for them, to actually view properties before writing offers. Secondly, consumers may be hesitating to see how the new administration will react to the real estate industry. With the Fed raising interest rates last March for only the 3rd time since 2008 and whispers of loosening up development regulations, consumers may be choosing to hang back an extra month or so to see how things unfold. Lastly, these properties have increased ~16% in price per square foot from this time last year, causing some to baulk at the increase. However, it’s become apparent that people have realized the value of this community and are willing to pay for its exclusiveness. Proof of that is in Martis Camp recently selling its last lot despite skeptics predicting Martis Camp would fail shortly after its inception.
Also of interest, the last studio condo sold in Northstar Village, closing at $299K after having spent 285 Days on the Market (DOM). The last time a studio sold in the Village was back in November 2016. Before that, back in April of 2016. I believe this low turn over of inventory demonstrates owner satisfaction of owning a studio in the Village, both in terms of their lower cost of entry and steady stream of rental income.