When you are in the real estate business, everyone’s first question is “How’s the market?”
When you sell more real estate in Brooks Tower than anyone else, the question becomes “How’s the market in Brooks?”
Finally, everyone wants to know “How’s the market in Brooks with the upcoming assessment and what will it do in 2019?”
The market in Brooks has been a mix over the past 18 months but we can point to some clear trends.
Brooks Tower basically has 3 product lines: Studios, 1 Bedrooms, and 2 Bedrooms. Of course we have a mix of other types of condos including 22 Lofts, 4 Penthouses , a handful of 3 Bedrooms, and the business condos at the base of the building, but the majority is in those first 3 groups.
The Studio market has held up well during the past year and a half of Riser Project discussion. 2 years ago, Studios were selling in the $170-200K range and the remain there today. Because there are not many Studios available in the downtown market, they generally sell fairly quickly in less than 30 days. In studios, we are not experiencing price reductions and a negative market as a result of the assessment; rather, we are just not seeing regular increases in market value currently.
The 1-bedroom market softened over the past 18 months. These were trading in the $260-300K range previously but have now settled into the $225-250K range. Since there are more 1 Bedrooms in the building than anything else, they also stay on market longer. We think that the market has already priced most of the projected cost of the assessment into asking and sales prices; we also do not expect the 1-bedroom market will improve over the next 6-12 months.
The 2-bedroom market is a bifurcated market. Lower end condos in this bracket have been selling in the $265-300K range (plus parking) and the upper end has moved up from previous markets and is selling in the $350-370K range (plus parking). While lower end 2 Bedroom condos will usually take 45-60 days to sell, the upper end condos have sold in as little as 9 days on the market. Prior to this recent cycle Brooks did not experience a 2 Bedroom sale over $400K with parking included and we have now seen 6 transactions at or above $400K.
Interest in the building remains high as buyers see opportunity in the pricing compared to other downtown locations. Now that the election is behind us and the weather has chilled, we expect a slight increase in phone, internet, and walk-in traffic for the remainder of the year.