There is some light at the end of the tunnel as Brooks has moved past the halfway point in the Repiping Project…and no, it is not a train coming at us. Early on, you may recall we shared some projections based on what we have seen with other buildings and communities experiencing major projects requiring special assessment. Our research led us to believe that once the initial shock of the special assessment combined with unaccustomed disruption of construction and water shut-offs became manageable, market prices would begin to rise again; eventually the building would return to original market pricing and even exceed previous sales levels.
We are pleased to finally present some good news on property values in Brooks Tower!
The average studio price moved from $157K in 2019 to $224K in 2020; this is an increase of 40%. There are a number of factors too numerous to outline in this short blog that have assisted in this price jump, but overall, the market on studios has regained much of its strength with some prices exceeding previous highs.
The news on 1-Bedrooms is that prices are now holding steady in a year-by-year comparison. Early in the project we did see some low sales; we have seen these holding steady although we do not envision any price breakthroughs until the project reaches completion. With the effects of COVID19 on the downtown market likely to continue through the first two quarters of 2021, earlier anticipation of market improvement remains unsure; we may see slight erosion in 1-Bedroom prices during this period as supply exceeds demand. The current average price is $258-259K.
2-Bedroom sales experienced a 19% increase in 2020 with fully remodeled condos leading the market. The average price moved from $302K to $360K and all sales in 2020 were without parking included.
Overall, it should be noted that sales in the initial assessment period were bifurcated; sales of condos with assessment paid by sellers was a higher market, and sales of condos without assessment paid by sellers went to a lower market point. Nearly all sales in the 2020 market reflected the former as buyers resisted coming in with an extra assessment.
We were pleasantly surprised to see the overall market holding its own and improving in two major areas this year. We really did not know what to expect given the trifecta of challenges from continuing construction disruption in the building, civil unrest and protests in downtown, and the specter of the novel coronavirus.