With the housing market recovering well and, in fact, surging in recent months, one interesting trend to note is that the market for condominiums has been improving as well. In fact, The condominium market is outpacing single-family homes in many cities across the country. This is noteworthy because the condo market was one of the hardest hit during the housing market collapse last decade, but now it’s among the healthiest.
Let’s take a look at just how well condos are performing right now in a few major cities across the country:
- In San Francisco, condos have seen a 29% annual increase in value.
- In Los Angeles, condos have seen a 17% annual increase in value.
- In New York, condos have seen a 12% annual increase in value.
This list could extend much further, but the point has already been made – condos are back!
For sellers, this is tremendous news. The value of condominiums is expected to continue rising through 2013 and into 2014, so it’s a great time to consider selling. With limited inventory on the market and rising values, we’re in the middle of a seller’s market.
Are Condos Bad News for Buyers?
With the value of condominiums on a steady rise, what is great news for sellers might not be such happy news for buyers.
Here are some of the issues condominium buyers currently have to deal with:
- High prices—With the price of condominiums increasing every month, buyers are looking at higher selling prices than we’ve seen in many years. Getting a good deal on the right condo can prove challenging in this current market.
- Low inventory—Another issue buyers are dealing with is that there aren’t a whole lot of condominiums to choose from right now. That’s due to a number of factors, including fewer foreclosures as lenders work with homeowners, but one of the main reasons is that sellers are holding on to their condos until they reach their peak value. With less inventory, that means finding the home of your dreams is more difficult.
- Difficulty receiving lending—Getting a loan for a condo is proving tough in this current market. That’s because a lot of lenders were burned by condo buyers last decade, so as a result, they’re being much more cautious with granting loans. For buyers, this means fewer financing choices than those who are buying a single-family detached home.
- High condo fees—This isn’t a new issue. Condo fees have always been a drawback to buying a condominium. These monthly fees are paid by residents each month to cover the general maintenance of the building and the grounds. These fees are typically quite high and often subject to change at any time.
Considering Buying a Condo?
If you’re thinking about buying a condominium in the Outer Banks, let the experienced, knowledgeable team at Coastal Outer Banks Realty guide you through today’s changing market. We’ll educate you on the advantages and disadvantages of condos and make recommendations for the best communities for your needs.
Visit www.coastalouterbanks.com today for more information!