A Breakout Year.
The phenomenal resurgence of the real estate market that we've witnessed so far this year has not only benefited single-family homes in San Carlos -- it has also been extremely fortuitous for the condo and townhouse market in San Carlos, and 2013 is shaping up to be one of the best years in recent history for that segment of the market.Back in 2008 when the credit market cratered and the local real estate market stumbled, the condo and townhome sector was hit particularly hard. From the pre-recession high of 2007 to the lowest point in 2011, the average price of condos and townhomes in San Carlos dropped by nearly 37%.
Buyers who purchased at the height of the market suddenly found that they were paying on mortgage that was more than their unit was worth. The result was a surge of short sales and foreclosures, which further eroded the value of surrounding units during this time. Needless to say, the past 5 years have been extremely challenging for owners of condos and townhomes in San Carlos.
Full Recovery.
When the real estate market skyrocketed earlier this year, this segment of the market was not left behind. As you can see from the attached chart, the average sales price of condos and townhomes in San Carlos has jumped a whopping 32% from just last year, and an even more stunning 35% from the trough year of 2011. This puts the average sales price back on par with the levels that we saw in the pre-recession years of 2004-2007.The average median sales price and the average price-per-square foot also saw similar impressive gains this year. These charts can be found on a more detailed summary that I posted on the White Oaks Blog earlier today.
This is all music to the ears of homeowners who probably never thought they would see the day when the market fully recovered from the nightmare of the past 5 years. Here's to hoping that the good news continues.
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Chuck Gillooley is a San Carlos resident, Realtor, and author of the popular White Oaks Blog.
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