1st Quarter, 2024 Market Report
We’ve seen an early start to our typical year. Most of the time we do not see a lot of activity in the real estate market until Mid April, with a steady increase starting in mid-late March. That has not been the case for the 1st quarter this year. This will be a data heavy in depth view at what’s been going on in the market contrasted against what the market was doing in the 1st and 4th quarters of 2023. So climb on up, and let’s dive into these waters together.
Homes (Single Family)
- Q1 2023:
- Sales: 1
- Days on Market: 39
- Closing Price: $575,000
- Acreage: 0.217
- Age of Homes: 9 years
- Q2 2023:
- Sales: 8
- Days on Market: 87
- Closing Price: $1,097,637
- Acreage: 0.323
- Age of Homes: 13 years
- Q3 2023:
- Sales: 2
- Days on Market: 218
- Closing Price: $1,007,500
- Acreage: 0.227
- Age of Homes: 30 years
- Q4 2023:
- Sales: 5
- Days on Market: 135
- Closing Price: $1,142,000
- Acreage: 0.359
- Age of Homes: 18 years
- Q1 2024:
- Sales: 1
- Days on Market: 49
- Closing Price: $920,000
- Acreage: 0.333
- Age of Homes: 29 years
Home Sales
Aerial photo of lot on The Homestead Drive with a distant view of PK lake and Hells Gate
The market for single-family homes showed a contrasting trend when comparing sales from the first quarter of 2023 to the first quarter of 2024. Sales remained relatively stable, with 1 sale in each period, but the average closing price saw a substantial increase from $575,000 in Q1 2023 to $920,000 in Q1 2024. This significant price jump can easily be understood when you realize the 2023 home was an interior home, while the 2024 home was on the coveted cliff line looking over the lake. Interestingly, the days on the market before sale decreased from 39 days in Q1 2023 to 49 days in Q1 2024, suggesting that while homes may be selling for more, they are also taking slightly longer to close.
Lots (Unimproved Land)
- Q1 2023:
- Sales: 11
- Days on Market: 115
- Closing Price: $40,855
- Acreage: 0.232
- Q2 2023:
- Sales: 3
- Days on Market: 158
- Closing Price: $168,333
- Acreage: 0.411
- Q3 2023:
- Sales: 13
- Days on Market: 255
- Closing Price: $33,538
- Acreage: 0.305
- Q4 2023:
- Sales: 9
- Days on Market: 262
- Closing Price: $10,222
- Acreage: 0.187
- Q1 2024:
- Sales: 16
- Days on Market: 246
- Closing Price: $12,216
- Acreage: 0.261
Lots (Unimproved Land)
Looking at the data, the first quarter of 2024 saw a remarkable increase in the sale of unimproved land (lots), with sales almost doubling from 9 in the fourth quarter of 2023 to 16 in the first quarter of 2024. This surge contrasts sharply with the 11 sales recorded in the first quarter of 2023, highlighting a growing interest in land development or investment opportunities. Or does it?
Despite the increase in transactions, the average closing price saw a slight decrease from $10,222 in Q4 2023 to $12,216 in Q1 2024, suggesting a higher volume of lower-priced land parcels changing hands. The average days on the market before closing dropped from 262 days in Q4 2023 to 246 days in Q1 2024, indicating a slightly quicker turnover in land sales. It should also be noted that during the first quarter of 2024, the development (Double Diamond) appealed heavily to property owners to sell their unimproved lots back to the developer. How many of the lots that were sold back to Double Diamond below market value in the 1st quarter of 2024 is still to be determined.
Condos
- Q2 2023:
- Sales: 3
- Days on Market: 68
- Closing Price: $500,000
- Acreage: 0.133
- Age of Homes: 26 years
- Q3 2023:
- Sales: 2
- Days on Market: 84
- Closing Price: $521,250
- Acreage: 0.287
- Age of Homes: 24 years
- Q4 2023:
- Sales: 1
- Days on Market: 102
- Closing Price: $465,000
- Acreage: 0.435
- Age of Homes: 22 years
- Q1 2024:
- Sales: 2
- Days on Market: 37
- Closing Price: $411,250
- Acreage: 0.114
- Age of Homes: 23 years
Condos
The condo market exhibited stability in terms of sales volume from Q4 2023 to Q1 2024, with a slight increase from 1 to 2 sales. This growth, however, is modest when compared to the 3 sales observed in Q2 2023. The average closing price for condos saw a 10% dip from $465,000 in Q4 2023 to $411,250 in Q1 2024, reflecting a market correction or potentially a shift towards more affordable units. That said, the average days on the market saw a considerable decrease, from 102 days to just 37 days, indicating a much faster pace of sales and possibly increased buyer demand in the condo segment as we moved into 2024.
Synopsis
The real estate market has witnessed diverse trends across different property types from the first quarter of 2023 through to the first quarter of 2024. Unimproved land sales saw an increase, indicating a rising interest in land investment or development. The condo market has shown resilience with stable sales and a quickened pace, suggesting a solid demand. In contrast, the single-family home market has experienced remarkable price appreciation, though with limited transaction volume, highlighting a premium on quality and location. Currently, the variety of properties on the market offers potential buyers a wide range of investment opportunities, from the rapid turnover of condos to the strategic purchase of land and the premium valuation of single-family homes, reflecting a complex and multifaceted real estate environment.
What To Do With This Info?
Depending on your desires, this information will either be helpful in understanding your property’s appreciation, what to expect in the coming property tax assessment, and/or just understanding the market. If you have been toying with the idea of putting your property on the market, the 2nd and 3rd quarter of the year have historically always been the most productive and fastest paced for PK real estate.
If you’re looking at selling, feel free to reach out and ask about a “Competitive Market Analysis” or CMA. With the quickening of the market, there’s not a better time to list. Your biggest question will be, did you pick the best agent to market for you? And we’re confident that we can help you answer that question with an emphatic “YES”.
Who’s Moving In The Cliffs?
Possum Kingdom Real Estate continues to set the pace for sales in The Cliffs. Of the 20 sales that have taken place this past quarter, Matthew Renfro has represented 8 Sellers and is also credited with 8 of buyers sides as well. Additionally, Lars Hanssen and Jonathan Fowler are also credited with selling 1 of the condos from this quarter as well.
Written by Matthew Renfro with the aid of artificial intelligence.
All photography done by Matthew Renfro and is not for use beyond this website without his expressed approval.