With the exception of the middle of the decade the condo market has been a little unpredictable. Prices have jumped around quite a bit from year to year. Looking at prices on a square footage basis there is a general pattern of increasing from 1999 through 2007/8 then dropping off from there to where we are today. While looking at all condo sales together gives a general pattern, in order to truly understand pricing for a particular unit it would be best to look at the condo association individually.
The greatest number of sales occurred from 2004-2007 and can be attributed to the construction and completion of the Gardd Parc Condo Association in 2005. During this time frame about 2/3 of sales were in Gardd Parc. Also of note during this period was that the length of time on the market peaked at over 1 year. I suspect this was due to many brand new units coming to market at the same time. Since then the time on the market has come down to about 4 months for last year.
Most of the condo associations at least saw appreciation in their first several years. A few of them even had some major gains. Tyler’s Place, Founder’s Crossing, and Derwen Glyn had some pretty incredible appreciation from the early part to the middle of the decade. Derwen Glyn in particular had a run of a few years with over 10% annual appreciation! Since about 2005/6 it has been a different story. Some condos have maintained or had a slight increase in value, but many have also lost value. The bottom line is that the increases seen in the early and middle part of the decade are gone. When values do start to go back up expect only small increases for at least the next few years.
No comments:
Post a Comment