This edition of your market update is a year-end recap of 2022’s activity. The number of available properties at Diamond Beach Condominiums was lighter than in 2021, so not surprising that the average list price increased year-over-year, since buyer demand hadn’t dropped dramatically. Given the popularity of Diamond Beach Condominiums, buyers were willing to pay top dollar despite the steady stream of news they heard about the shifting market. This tolerance for higher prices is likely to end, even in the luxury market. From what I’m seeing, the peak is pricing may have passed for the majority of properties on the island. Stay tuned.
What hasn’t yet changed dramatically is the overall level of inventory in Galveston. I am certainly seeing more properties come on the market, especially now that the holidays are behind us. It will be interesting to see if inventory at vacation-rental-friendly properties like Diamond Beach Condominiums will increase leading up to Spring Break (the traditional start of the rental season), or if the likely increase in travel in 2023 will keep rental owners from selling in anticipation of a possible banner year for vacation rentals. Interest rates are a consideration for sellers as well, if they are planning to finance their new purchase. It can be difficult to justify trading a lower rate loan for a higher one, AND pay more for the property, especially for a non-essential purchase.