The median condo price, as recently as February, was still 18% behind the record highs last seen in 2006. Today, that median condo price sits at $253,000. Since February, prices are up for 4 straight months and the percentage gain is impressive at 10%. Now, we are only 9.5% behind the old record and all signs appear to point towards that gap being closed further in the weeks ahead.
Why are condo prices rising so much in relationship to single family prices? Affordability is the main reason. Many buyers simply cannot afford to qualify for a single family home purchase and are forced to look at condos where median prices are less than half of a single family home. New residents continue to flock to the area and if they want to purchase, condos remain a far less expensive alternative.
It’s still summer. Condo sales over the past 30 days are 34% lower than last year’s numbers. It is the second straight month the condo market has softened since last year. Even with far slower sales, prices are moving higher. More buyers qualify for loans now that interest rates are solidly below 4% on a 30 year fixed mortgage. Condo prices are heading higher from here. Bank on it.
Be very careful if shopping for a home this summer. Have a complete understanding of all the critical numbers with any purchase. Understand how condition and the financial condition of the condominium association affect market value. Don’t get sold by a broker whose main goal is to “close” you and put a commission in their pocket. Find a broker who wants to educate, and make sure you are making a sound decision, based on the property you are considering and your own unique situation. If you can find a broker who gives you a significant credit at closing like Paradise Sharks has started to do with every client. If we can ever help educate you please let us know at email@example.com or 561.308.0175. Don’t settle for mediocre. You can always pay more, and get less, but that just wouldn’t make sense.