Last year, 2007, there were 54 sales between the two Grande towers. The average sales price per square foot was $638, putting the average sales price per unit at $954,332. In the first quarter of 2008, The Grande towers have had 15 sales, showing that the market is on par(even slightly higher) with 2007s pace.
The average sales price of The Grandes first quarter comes to $884,066, which is 8.4% lower than 2007s average. Are prices still falling? Not really. This lower average reflects the smaller units that have sold, as well as the lower floor sales. Q1 of 2008 had an average sales price per square foot of $626, which is less than 2% below last years average.
Comparing the average list price versus sales price of the two time periods, Q1 of 2008 is slightly closer, with a 4.5% difference, versus a 5% gap in 2007. Granted these statistics are based on a limited time period and a very specific market, but they do seem to contradict what many people say and definitely what the media preaches “ that prices are falling and that the bottom is still far away.
I believe that the bottom is between now and the end of 2008. Were already seeing more activity in the market, with more buyers and less buyer incentives. With taxes being over, I think well see more buyers taking advantage of the low rates and increased conforming loan limit. Yes, some cities and some buildings might dip a little further, but I highly doubt any buyer will care about the small amount of money they may have saved by waiting another 6 months, when it comes time to sell in 5 years.
The problem with timing the market perfectly and waiting until the market has absolutely hit bottom, is that it cant be predicted. If it were as simple as listening to the newspapers, then wouldnt every journalist would be a wealthy real estate mogul? The trick is finding a good property, at a good price, at a good time. If you try and get everything perfect, youll always be waiting on the sideline. Oh yeah, you also want to make sure you have a good Realtor too.
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