Condominium Market Update

Are condominiums selling in New Hanover County? Everyone talks about stick built homes, but what about condos? Find out first hand what’s selling and what’s not.

Condominium Market Update

Written By Mary Beth Tice

On October 10, 2011, I shared with everyone the average sold data for stick built, single family homes in New Hanover County. Surprisingly some of the feedback I received was “What about condos and townhouses? Don’t you have information on them?” And the answer is yes, of course I do! I simply fell into that mindset of everyone only wants to know what stand-alone house are doing and that was obviously wrong on my part! To make up for it, I bring you the first in my two-part blog on the current state of the market for condos and townhomes. Because of the difference in property types and data, this first portion will focus solely on condos with the second part focusing on townhomes.

The Facts

Currently Listed Condos

Out of the 420 condos currently for sale*, the majority of the properties are priced between $200,000-$249,999 and total 61 units (or 14.52% of the market) with an average of 224 days on the market or 7.5 months. 51 units (12.14% of the market) are a close second and priced between $250,000-$299,999, with an average of 256 days on the market or 8.5 months. There are currently 27 units (6.43% of the market) listed between $100,000-$119,999, with an average of 279 days on the market or just over 9 months. While not third place for actively listed condos, this price point will come in handy momentarily.

Currently there are 278 2-bedroom condos for sale (66.19% of the market) with an average asking price of $204,880, average square footage of 941 and average days on the market of 255 (about 8.5 months). 3-bedrooms make up a distant second place with 101 units for sale (24.04% of the market) with an average asking price of $421,408, average square footage of 1,503 and average days on the market of 271 (right about 9 months).

January 1^st-September 30^th, 2011 Sold Condos

Between January 1^st and September 30^th 2011, 305 condos sold. Of these sold condos, 45 units (or 14.75% of the market) were sold for $100,000-$119,999 with an average of 166 days on the market or 5.5 months. 39 units (12.79% of the market) sold for $200,000-$249,999 with an average of 225 days on the market or 7.5 months. And 24 units (7.87% of the market) sold for $250,000-$299,999 with an average of 247 days on the market or just over 8 months. What I personally find interesting about this data is the fact that the most condos sold currently only rank 6^th in actively listed condos currently. Be sure to read my take away for more on this.

The majority of condos sold during the first nine months of 2011 were 2-bedrooms (176 units, 57.70% of the market) with an average list price of $158,825, average sold price of $145,769, a sold to list price ratio of 91.78%, averaged 949 square feet and averaged 178 days on the market or almost 6 months. 3-bedroom condos ranked second with 92 units (30.16% of the market) with an average list price of $279,994, average sold price of $259,446, a sold to list price ratio of 92.66%, averaged 1,496 square feet and averaged 233 days on the market or just over 7.5 months.

My Take Away

Buyer’s Market, Seller’s Market, fact is the market is what YOU make it! There are tons of factors that determine what your home is worth and how fast it will sell: location, style, size, age, etc. Some homes sell quickly in a “buyer’s market” and some sit for over a year in a “seller’s market.” Yes, these terms can mean something when looking at a broad spectrum of properties and seeing if inventory moves quickly or sits around growing fuzz. And, overwhelmingly I am noticing condos have a much longer time on the market than stick built homes thus creating the appearance of a “buyer’s market.”

If you don’t want to sit on your property longer than you need to, consider all the factors of your property before listing. For example, if half of your building is up for sale, what is the cause? Potential buyers are going to want to know why. Has your property produced rental income recently? Mention that as a selling point to other potential investors.

Here is the key take away that I want to point out- the price point with the highest number of sales averaged less than 6 months on the market. Pricing your property is key to selling quickly. If you choose to overprice your property, be prepared to wait even longer for that one buyer.

Ready to Sell?

Before putting your property on the market, find out what your condominium is worth or get your free market report and soon you will be house hunting for yourself!