- END OF YEAR 2016 Market Notes
- We predicted last year that we expected the housing market to level off once median sales prices approached or crossed the $600k range. This goal would be consistent with the expected historical appreciation curve if we ‘flatten’ the ‘bubble’ years
- It will be interesting to watch the price curve on the condominium market … because in a typical recovery condominium prices lag single family homes, but when single-family prices level-out if the market still has ‘legs’ condominium pricing should continue to rise as more buyers consider the more affordable condominium option.
- In other words, the demand ‘adjusts’ to condominiums as home prices rise … this happened in the 1990s following the dot-com boom and then in the 2000’s during the real estate bubble years
- Condominium prices across the board continued to be flat … this might be predictive of continued strength in single-family residential market. As long as the price of homes continue to be attractive and affordable, condominium appreciation could continue to lag.
