Condos Rising in Popularity
I was checking out the latest on Bloomberg, and came across a tid or two about condos making a comeback and then started surfing online and found supporting evidence that condos are beginning to become popular once more. It seems that new condo towers are appearing fast from the East to West Coast. Developers have long held that these are a riskier type of residential property.
One example is a new forty-one story tower in Seattle currently under construction and the largest condominium development in the city's history. Also, consider a 22 floor condo living building scheduled to begin later on this year and the city's high-rise condominium endeavor since 2005.
"Condos are regaining favor after a surge in rental demand pushed the U.S. apartment-vacancy rate to the lowest level in a decade, sending urban rents soaring, while the inventory of for-sale housing remains historically low," Bloomberg reports. I'd like to add it's a great balanced market tipping faster towards a sellers' market. If you're going to buy, buy now.
"We're in the very early stages of a long recovery in condos," says Sam Khater, deputy chief economist for CoreLogic. "Now you're seeing rental booming, but today's renters are going to be tomorrow's condo buyers."
For the duration of the past housing crisis, builders that once favored condos faced sure hardship as buyers began canceling out purchases once home values began falling. Luckily, we've seen a lot of healing in the real estate industry the last few years and everyone's feeling more confident from what I see and here. However, in the not to distant dire past, developers have held off planning and construction as they take a large gamble committing funds and work before transactions are completed and why condominium development is such a scary or risky type of realty.
Just a few short years ago, large metro communities like San Francisco, Miami, and NY City, largely driven by wealthy and international buyers often payed cash. Now that smaller local markets all around the country are experiencing heightened interest as housing inventory continues to shrink, and mortgage lenders gain confidence about our nation's housing recovery.
According to the National Association of Realtors, condominium prices rose over eight percent over last year, and nationwide median price for last April stood at $205,500 and compare that to the average single family home gaining 4.7% in that same time period to #210,100, a clear indicator of demand.
National Association of Home Builders chief economist David Crowe told Bloomberg "There's a lot of pent-up demand from first-time home buyers, and condos are a good first stop. Crowe further stated, "Dense developments like condos give the lifestyle they're looking for."
Whether your in the market for a condo or home, if you looking in the Greater Dayton Metro Area in places like Kettering, Centerville, Beavercreek or Springboro, I'd love to show you around. Give me a shout! You can also use our property search to specifically find condos, and if an MLS area doesn't support condos, just try "condo" in the keyword section.
Juanita Limes - Your Greater Dayton Area Ohio Realtor - Give me a shout for all your real estate needs,
937-776-6903 or just email me.