August, what’s popping?! It’s hard to believe that summer is almost over. We hope everyone has been enjoying the fantastic warmth of the sun and the spectacular patio season.
Now, on to real estate! This month, we saw a decrease in total condo sales year over year and month over month. We also saw an increase in sales volume year over year and a decrease month over month. Let’s delve into the numbers for our Liberty Village condo market in July and let them do the talking.
How Many Condos Sold in Liberty Village In July?
July 2022 saw a total of 18 condo sales in Liberty Village. In comparison, July 2021 saw a total of 35 condo sales. A 48.57% decrease – if real estate news is your thing, it won’t surprise you to hear that inventory has increased, interest rates have increased and demand has decreased. For buyers, this can be seen as very good news – less competition and more to choose from. We simply can’t call this a “buyer’s market”, though, because, as we’ll see later in this post, prices have risen steadily year over year . In summary, the market has cooled off, but prices have not, and 18 buyers had enough confidence in the market to make one of the largest purchases of their lifetimes.
When looking at condo sales month over month, June 2022 had 27 sales. That’s a 33.33% decrease in condo sales month over month. Historically, we see that condo sales decrease as we progress through summer, except, inventory doesn’t usually increase at the rate that we are seeing. We can attribute this decrease in condo sales month over month to the interest rate hike and mid-to-end summer market. The increase in supply can be explained by the various properties that are simply not selling and being carried over to the following month. Another factor could be that the interest rate hikes are affecting those with variable rate mortgages and the monthly carrying cost is becoming too expensive – hence, the need to sell. It will be interesting to look at how prices were affected… stay tooned for this later in the blog post.
To sum it up, condo sales in July decreased month over month and year over year and the number of buyers confident enough to make their biggest lifetime purchase was a small number given the lack of demand and surplus in inventory, crazy prices and increased interest rates.
Sales volume tells us part of the story. Let’s look at prices. Did values increase, remain the same or decrease from July 2021 to July 2022? Let’s take a look at the average sale price for all types of condo sales year over year.
The average sale price in July 2022 was $755,790 on the 18 sales. The average sale price for the 35 sales in July 2021 was $688,541. A 9.77% year over year increase in sale prices. This is especially notable given all the current factors affecting the market. Additionally, when we compare last years interest rates to this year’s interest rates, an interest rate hike can be noted. Although, we want to point out to buyers that while the present interest rates seem catastrophic, they have been much worse. So, don’t get too discouraged by the present interests rates, as they are not even close to the height of interest rates we’ve seen.
The average sale price in July 2022 was $755,790 on the 18 sales. The average sale price for the 35 sales in July 2021 was $688,541. A 9.77% year over year increase in sale prices. This is especially notable given all the current factors affecting the market. Additionally, when we compare last years interest rates to this year’s interest rates, an interest rate hike can be noted. Although, we want to point out to buyers that while the present interest rates seem catastrophic, they have been much worse. So, don’t get too discouraged by the present interests rates, as they are not even close to the height of interest rates we’ve seen.
Now, what about sales volume month-over-month? The average sale price in June 2022 was $768,594 on the 27 sales. A 1.67% month over month decrease in sale price. Now, this is the “catastrophic” drop in sale prices that the news is focusing on. Really, a 1.67% adjustment in month-over-month sale prices is a minor adjustment. We have to look at the big picture to consider the overall market – month-over-month sale prices may have lowered ever so slightly, but they increased 9.77% year over year. It is important to note that real estate is a long-term investment, so when we look too closely at the short-term wins and looses, it can distort the actual reality of the market.
The Liberty Village condo market for July 2022 has proven to be a stoic one, despite a number of factors. We are especially impressed by the 9.77% year over year price increase. What are your thoughts?
Any predictions for the rest of the Summer or Fall market? Let us know in the comments below.
Curious how July 2022 differed from the year before? Take a look back at our post for the Liberty Village condo stats in June 2021.
If you have any specific questions about the market or are curious as to how this relates to your Liberty Village condo, get in touch. You can fill out our Condo Value Form or send us an email.
