Last month, we looked at sales volume variations over time. We will now examine changes in prices and values over the past three years. We must be reminded that a decrease in Median prices does not automatically mean a decrease in value for each single condo unit, but rather that buyers buy more affordable properties within the same complex.
The graphs speak for themselves. We will, however, add a few thoughts.
Commonalities between the Three Condo Complexes
Although the number of sales picked up drastically soon after the Covid quarantines and closures ended in May 2020, prices remained stable at their pre-Covid levels for a while – until 2020-Q4 for the Shores of Panama, and until 2021-Q1 for Laketown and Summit.
Another common behavior of Laketown and Shores is the steady decline in Median values beginning in 2022-Q3. This can be attributed to the increase in interest rates.
Differences between the Three Condo Complexes
Responsiveness to market changes is the first change we notice. Shores were faster to gain value after Covid, one quarter ahead of our two other complexes. Shores were equally faster to reach their peak, ahead of Laketown and Summit. The Shores’ cycles were therefore ahead of Laketown’s and Summit’s.
Interest rates jumped in mid-2022. Consequently, starting with the pivotal 2022-Q3, Median values began following different paths: a slow decline in Median prices began for Laketown and Shores; for Summit, the line – although more haphazard – kept creeping up, reflecting further increases in Median purchase prices. Note that the July 2023 performance is not significant because only one month was considered, and not the entire quarter.
In conclusion, two proactive consequences can be drawn for Laketown and Summit owners: (1) Keep track of what happens at Shores, and you’ll have a three-month notice of what is likely to happen to you! In other words, when Shores plateau or peak… You know that the winds are changing. (2) As always, seek the advice of an experienced professional for guidance tailored to your needs.