Whether you’re a person who loves to see all the new multi-family developments around town or loath the high(er) rise construction and miss “the way things used to be”, condo development in and around Traverse City is here to stay, and in today’s increasingly competitive seller’s market, the prices are going up, up, up.
In this week’s market snapshot, we’ll take a look at the condo activity in Traverse City since the start of 2021 and make some predictions about what we’ll see for the rest of the year.
High Priced Condo Sales are on the Rise
Since the start of the year, there have been 15 condo sales with a sale price of $430,000 or higher. Many people will say that’s too much to pay for a home without any ground underneath it, but buyers of these condos disagree. The condo owner is looking for convenience, they’re looking for a relatively maintenance-free lifestyle, and ultimately, for a location that is going to get them where they want to be in as little time as possible.
Some of the standout sales from this year so far are Shannon Beia’s (Coldwell Banker Schmidt Realtors) listing at 400 W Front Street (sold price $1,400,000), Brick & Corbett’s listing at 13919 S West Bayshore Drive (sold price $1,135,000), Erica Mohr’s (Real Estate One) listing at 109 E Front Street (sold price $1,080,400), and Camille Campbell’s (Coldwell Banker Schmidt Realtors) listing at 800 Cottageview Drive (sold price $800,000).
Overall Condo Activity is Up in 2021
It’s no surprise that condo activity was suppressed through the first part of 2020; COVID-19 and the global pandemic had most buyers very wary about the idea of making a home purchase that put them in the same building as others. However, the speed at which condo sales have roared back in Traverse City shows that those fears were only temporary.
Here are the sales of condos in Traverse City through April 23rd in 2020 vs 2021:
2020 Condo Sales in Traverse City
Total Units Sold: 72
Median Days on Market: 75
Total Sales Volume: $19,046,777
2021 Condo Sales in Traverse City
Total Units Sold: 105
Median Days on Market: 42
Total Sales Volume: $30,636,415
How Do Condo Sales Compare to Single-Family Homes?
It’s difficult to measure the performance of condo sales to the overall performance of the market because the buyers of condos are often not the same buyers for single-family homes. So, while we can’t provide you with hard, meaningful data on this, we certainly can provide our personal experience.
Single-family homes are going so fast right now that our marketing and transaction management team here at Brick & Corbett, some of the most skilled real estate support professionals in the entire area, are having a hard time keeping up with how fast offers come in and how quickly a property’s status will change.
It is not uncommon for a property to hit the market on a Thursday and have an accepted offer before the end of the following weekend, if not by the end of the day on Friday.
While the market velocity for condos isn’t quite that fast, the demand is still extraordinary, and the typical days on market for a condo is only slightly longer than that of a single-family home. Overall, if buyers want to maximize their chances of getting a home, we suggest they consider both condo and single-family home options.
What’s the Future of Condo Sales in Traverse City?
Though nobody has a crystal ball, we here at Brick & Corbett predict that we’re nowhere near the peak of condo sales (or prices) in the area. The fact is, there’s a finite amount of ground to build on and there’s continued, growing demand for housing in our area. A natural resolution to this conflict is to increase density, and there’s still plenty of opportunities to do so within the bounds of the current zoning laws.
Whether new condo developments will be high-end luxury affairs or more accessible housing designed for tourism and retail workforces remains to be seen; there is still a significant appetite for the more expensive properties, so that is likely to be the path developers take for the near future, at least in the downtown corridors.
I Want to Buy or Sell a Condo in Traverse City: What Do I Do?
First thing you should do is contact Brick & Corbett. Our team has sold dozens of condo units, ranging from modest 1 bedroom units all the way up to $1M+ penthouses on the water. We know what it takes to properly price, list, market, and sell condos in this area.
If you want to buy a condo here, the first step is still the same. With more than 15.25 million dollars in condo sales on the buy-side alone, our team knows what it takes to put our buyers in the right unit for them and at the right price.
If you have questions about condos, there’s only one place to call: Brick and Corbett. Let us help you with the next step in your home journey today.