This edition of your market update is a year-end recap of 2022’s activity. The volume and pricing at the Rivieras and West Beach Grand Condominiums decreased last year. Not necessarily a surprise, given the issues with the buildings. Several sales were to investors who generally pay less. And retail buyers simply weren’t willing to pay top dollar anymore considering the steady stream of news they heard about the shifting 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. While this doesn’t apply to the Rivieras and West Beach Grand Condominiums, it will be interesting to see if inventory at vacation-rental-friendly properties 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.