So it seems that our Center City condo market really turned on a dime. Over the past 60 days, we have seen activity that hasn't reared its head since the height of the market say 5+ or so years ago.
But Why and How? Here is what I see from the front lines:
1) Inventory Depletion- As I mentioned in my last newsletter, inventory is down. Many segments of the condo market here in town can be considered a pure SELLERS MARKET.
2) Motivated Buyers-It appears that buyers are back, feeling that the bottom of the market has come and gone, and that real estate in town is now a worthwhile investment. I can't disagree.
3) Interest Rates are Inching Up-Which means buyers are interested in finally taking advantage of historic low rates. Joni Mitchell once sang "you don't know what you got til' it's gone"..... Bingo, Joni.
4) Many Sellers Are No Longer "Underwater"- Which enables them to finally decide to sell. A hint of fresh inventory leads to opportunities, which means sales.
5) Follow the Leader Mentality- We live in a "monkey see-monkey do" world. As more empty nesters sell their 4 bedroom rancher in the burbs, more friends and acquaintances follow their lead into town.
6) Cultural Shifts- After WW2, the move was to the burbs. Today, the move is into more urban living arrangements- being close to work, ditching the car for everyday use, and the lower costs to heat and cool a condo, not to mention the lack of responsibility in terms of maintenance (than a 4 bedroom rancher) can all contribute to the popularity of city condo living. I don't see this trend waning.
7) The Perception of City Living- Way up. From the perceived cleanliness of the city, to views on crime, livability, to cultural attractions....all help drive our condo market.
The first step in our turn around is inventory depletion. The next logical step is price escalation. I think we will see prices begin to increase as we move further into 2013. Multiple bid situations will mean many buyers will lose their bids for condos and will motivate them to make stronger offers on the second go 'round, if applicable.
I have witnessed our condo market go down, up, down, and now up again...all since I first began my focus on Center City condos in 1989. The writing is on the wall folks...History has a way of repeating itself, and from my vantage point, the market is indeed rebounding. So is it time for you to hop onto the bandwagon?
Call me...we can chat about your options.