Braemar Condo Quarterly: July-September 2022 (3rd Quarter)
Just when you think the crisp chill of fall is here, we get a warm autumn day. Doesn’t matter to me as long as the sun is shining. There is something so beautiful about the way sun streams into our windows and through the trees from its lower point on the horizon during fall. The light practically glows.
With the close of the third quarter, I bring you today the latest Braemar Condo Quarterly. It is surprising to many in our community that there are condos in Braemar. There is a common misconception that condos are apartments you can own, so the image goes to a building of units, or flats. While many condos are units in a larger building, condo denotes a form of ownership in which common areas are part of the condo structure and owned by all unit owners. The condos in Braemar are legally known as Barr Hill at Inverness Village Condominiums and are townhouse structures. Some have garages, others don’t. They are not included in the Braemar Townhouse Report because not only is the form of ownership different, sales can be impacted by investor-owner ratios and delinquency rates, both of which are not issues with HOA based townhouses. When these two things get out of an acceptable range, certain types of mortgages (FHA and VA) can not be obtained to finance the sale. If they get really bad, even conventional loans are impossible to get and sellers are stuck waiting for cash buyers. Thankfully, the condos in Braemar have not experienced a problem so severe to only allow cash buyers to purchase.
During the months of July, August and September there were only two Braemar condos that sold. The details are listed below.
Despite mortgage interest rate increases, these are healthy sales that each sold above their list price price, gave no seller subsidy (closing cost assistance) and were under contract quickly as seen in their low days on market (DOM.) When these third quarter 2022 sales are combined with Braemar condo sales going back to the fourth quarter of 2021, that year’s worth of sales is parsed out into the six and twelve month data points tracked in this report.
The sold price column shows that both the six month average and six month median sold prices are still above their corresponding twelve month values. The growth rate between the six and twelve month sold prices is not as steep, but an increase in value is an increase in value. Will this trend continue with the continued interest rate increase that, as of the end of September, had doubled mortgage interest rates since the beginning of the year? The fourth quarter report will tell the tale. For now, demand for housing is still outpacing supply. That is the definition of a seller’s market.
Seller subsidy shows the continued seller’s market trend with zero down the line for seller subsidy given. This is quite surprising to me as we see more buyers asking for closing cost assistance to buy down rate. I suspect the fourth quarter report will show the return of some seller subsidy.
Marketing times are fast with single digit days on market down the line. That is due to the demand continuing to be higher than the supply of homes. This market we are experiencing is a very interesting one.
If you placed your Braemar condo on the market, priced to current conditions, you could expect it to be under contract in a week, no more than two. As mentioned above, you could also expect that buyers will begin requesting seller subsidy to buy down rates. As home prices and mortgage rates increase, purchasers are finding their buying power is diminishing quickly. Gone are the days of multiple offers and waiver of contingencies. Working with one buyer is where most sellers are making deals
. Still, pricing right, having your condo properly prepared and professionally marketed can result in a top of market deal. It’s all about creating buyer enthusiasm.
The next Braemar Condo Quarterly will be out in January. Between now and then I wish you every happiness the fall and holiday seasons have to offer. Of course, when you get curious about what a move up sale would mean for you, I am always here and happy to consult with you. Rising mortgage interest rates are not a death knell for our market. Reach out and let’s schedule a time to talk. Since 2005, No One Knows Braemar Better!