Signs of an improving market continued in 2013 as condo sales maintained an upward trend in Wild Dunes. In 2012 a total of 42 condos sold for $19,894,000, with an average sales price of $473,666. While that was a slight improvement over 2012, the difference was barely noticeable. Now enter in 2013: In 2013, at total of 58 condos sold for $29,180,150, with an average sales price of $503,106.
In 2014 the trend is expected to continue. In some areas we are already seeing asking prices rise. Beach Club Villas for example, which were once going for up to $1.6 million during the real estate boom, have been selling between $800,000 to $1 million since around 2009. In the last two months, two have gone under contract with sales prices expected to be over that $1 million mark. In Port O Call, the average asking price is currently $387,778. Going back to 2010, nothing has sold in the building for over $345,000.
So what is it owners see and what is driving the price increases? There can be many factors but I attribute to these: 1) The second home market (which makes of much of Wild Dunes) is typically are year behind the primary market. The primary market has shown signs of improvement the last few years. 2) Fewer distressed properties on the market. Most of the short-sale and bank owned inventory has depleted. This means owners are no longer having to compete with low pricing in order to be competitive. 3) The thought of rising interest rates. Mortgage rates have been very good for the second home/condo market and buyers have been able to lock in historically low rates. Economist are pointing toward interest rates gradually beginning to rise. Rising interest rates will create a since of urgency. 4) Reduced inventory levels across the board. In most (not all) areas there is less to choose from. This creates competitiveness and pent-up demand that motivates buyers to pull the trigger when that condo they have been looking for hits the market. It also give the seller the chance to demand a higher dollar.
It will be interesting to see what happens in 2014. I am predicting numbers to continue to rise, especially as we get in the spring and summer. What do you think?
Wondering what sold in 2013? Click Here to go view the entire list of condos sold in Wild Dunes.