Dear Hibiscus Condo Sellers Your Market Is Coming!
It is certainly good news when we write,
Dear Hibiscus condo sellers your market is coming!
For so many years now it has been a buyers market. And now we could write,
Dear buyers your market is ending.
The change that is slowly taking place in the market can be beneficial to both sides of a transaction, sellers and buyers. Sellers will eventually be able to get higher prices for their Hibiscus condo units and buyers can feel confident in their purchase knowing that they are are buying at the bottom or on the way up. It should be comforting for buyers to know that although they may soon be paying more when making a Hibiscus condo purchase, they are buying in a market where prices are increasing. Their investment will not be going down in value any time soon. We had heard from a few buyers that did not want to buy in a market where prices were declining.
The market that is coming can be a win, win for both sellers and buyers. Sellers get higher prices for their condo units and buyers get good value in purchasing a condo unit that will be increasing in value.
Ok, what makes us think this is going to happen? I recently posted on VivianFoate.com a similar condo market blog post that was in reference to Gulf front condos. I did some research do see if the premise might apply to Hibiscus By the Bay condos.
Lets look at some market data from the Bay County MLS.
The image below shows some data with regard to Hibiscus By The Bay condo sales in the years 2009 to the end of 2012.
A question might be, why are we coming to this conclusion now? For us, the conclusion comes from basic market behaviors. Inventories are VERY low. If you look at the top graph you can see that the blue line for 2009 is quite a bit higher than the others. That signifies higher inventory. In fact in February of 2009 there were, now steady yourselves, 28 Hibiscus By The Bay condo units on the market. Yowsa! That was 20% of ALL the Hibiscus By The Bay units that exist! All on the market at one time! Now those high inventory numbers REALLY put some pressure on prices!
When looking at the graphs you shouldn’t necessarily look at points in time but rather trends. You can see overall inventories have been declining. Since July of 2012 the total number of condo Hibiscus condo units that have been on the market at one time has been under 10 units.
Currently there are just 6 Hibiscus condo units listed for sale in the MLS! One condo unit is a foreclosure and there are no short sales currently listed for sale. We do not think there is a large shadow inventory of Hibiscus condo units waiting to hit the market.
While we think this is good news for sellers and buyers, the sellers should not expect prices to increase rapidly in the near term. The pump has been primed…we think price increases will be incremental and are likely to be gradual. We can not say when exactly that will happen.
We do suspect that any increase in prices will likely take place first in the 3 bedroom Hibiscus units do to their popularity and there are just less of them, when compared to the 2 bedroom units.
We will however, keep a close watch on prices in Hibiscus By The Bay and periodically post updates to this blog on what is happening.
FYI there are a few wise Hibiscus condo owners here that we have set up on custom automatic MLS searches and they are the first to know whenever a Hibiscus condo unit goes on the market, has a price change, goes under contract or gets sold.
We also have some prospective buyers setup on similar searches so they can watch the market and have themselves in position to buy if Hibiscus condo that interests them comes on the market or has a price change.
We hope you found this post informative and helpful.
Thanks and have a GREAT day!
Mike and Vivian Foate