Wednesday, May 27, 2015

YTD CONDOMINIUM SALES EXCEED 2014

The CENTURY 21 Strand Group April 2015 Oceanfront Condominium Market Trends Report is now available and indicates an increase of about 10% in the number of oceanfront units sold and closed from January 1, 2015 through April 30, 2015. In fact, March saw the most number of units closed in a single month in the past two years. The increase in the number of units sold resulted in total sales volume of closed transactions also increasing by about $3.7 million YTD.

While hotel and timeshare development remain financially feasible, resort condominium retail price per square foot remains well below replacement cost which continues to prevent the possibility of new condominium construction. There are currently no hotel or condominium projects under construction and only one oceanfront timeshare resort under construction in the market at this time.

Condominium inventory has steadily declined and appears to have stabilized at around 1,500 units for sale along the oceanfront corridor which is a healthy level historically speaking. Annual sales velocity is projected at 1,500 units resulting in about a 1-year supply of inventory as traditionally measured. Short sales and bank owned inventory has virtually vanished from the market leading to price stabilization.


The large amount of developer inventory created during the condominium boom has been liquidated in the retail market or otherwise thereby freeing individual sellers from competing with developer pricing. 


The 2015 tourism season is still young but preliminary reports indicate an overall increase in gross rental income on
oceanfront condominium rentals is up around 8% YTD as compared to last year. Cost of ownership is up approximately 3% driven by utility costs and general inflation. 

Please visit
oceanfrontcondosforsale.com periodically to download monthly updates to the Oceanfront Condominium Market Trends Report.