Posted on 08/15/2005 10:08:33 AM PDT by Lorianne
In the Dallas-Fort Worth area, the number of condos for sale in North Texas has jumped by about 26 percent this year and while pre-owned home prices are flat, condo prices are up 6 percent.
The median price of condos in Massachusetts hit a record $269,000 in July this year, up 14.7 percent from July 2003 levels -- and sales are slow.
And in Hawaii, depending on which island you hop to, condo prices are up from 18 percent to 50 percent.
East, West, North and South, condo prices are booming.
Once considered affordable housing for first-time home buyers, some condos are so expensive their prices have skewed their cost relative to single-family homes.
And, to meet the demand, a growing number of cities are rushing to convert apartments into condos.
But that doesn't mean condos are for every home buyer.
The median existing condo/co-op price during the second quarter this year was $189,400, 12.1 percent higher than the same quarter in 2003. By comparison, the median price of an existing single-family home was $183,800 in the second quarter, up 9.1 percent from a year earlier, according to the National Association of Realtors.
A higher concentration of condos in more expensive housing markets skews the comparison, but condos still do typically cost less than single-family homes, NAR says.
The median condo price in the West was highest at $226,200, up 8.6 percent from a year ago. But the South with a median price of $163,300 saw the greatest price jump -- up 24.6 percent from a year ago. The Midwest's median $178,300 represents a 6.4 increase and in the Northeast, prices rose 10.1 percent to $211,100, according to NAR.
David Lereah, NAR's chief economist, says prices are fueled by demand from both first-time buyers looking for affordability and baby-boomers who are both down-sizing and buying second homes more and more often in urban areas where redeveloping city cores seek to heighten housing density and attract more retail businesses. Low-interest rates and high rents -- in some areas -- also have made condos more appealing in terms of affordability.
"While affordability is a factor for entry level buyers, changing lifestyles are a major reason that condos are a bigger market share today than in years past," said Lereah.
In 1993, condo and co-op sales accounted for 9.6 percent of the total of all existing-home sales. Last year, condos commanded a 12.8 percent market share -- a 33.3 percent rise in the portion of sales over the last decade.
Demand is so strong in Dallas, Minneapolis, and some Western states, property investors are converting apartments to condos.
"A huge block of the apartment sales transactions nationwide are to condo converters," said Greg Willett of M/PF Research Inc. "I think we are looking at somewhere close to 1,000 units converted in the past year" in the Dallas-Fort Worth area.
William Ktsanes, director of research and analysis at Novota, CA-based RealFacts, which monitors the apartment industry in the West, says condo conversions are eight times what they were a year ago.
"Condos are a lifestyle choice that provides an opportunity to live in a prime, urban location. For example, upscale condos line the waterfront of vibrant cities like Miami, Chicago and New York. On the supply side, the combination of flat apartment rents and rising home prices encourages owners and developers to transform rental units into condos. For investors discouraged by weak apartment fundamentals, converting to condos provides an opportunity to cash out near the top of a housing boom," said Ktsanes.
Condos, however, are not for everyone. Buying a condo is like buying a share in a closely held, publicly-traded real estate holding company (the homeowner association) that is governed by an ever-changing regulatory system, all of which are managed by an inexperienced board of directors -- your neighbors who volunteer for the job.
There's less maintenance than with a single-family home, but also less privacy from the higher density, close-in living that all may not enjoy.
Buyers also need to have the savvy, or to have a savvy real estate agent or other professional who can conduct an inspection that doesn't come with a single-family home purchase.
Potential condo owners must examine, or have examined, the homeowner association's funding and budget. That's to make sure there are both adequate dues being collected and adequate funds on hand to keep the development in tip-top shape so it is attractive to prospective buyers and so that it holds value and appreciates well.
A host of other differences between condo and single-family detached home living warrants close scrutiny before signing on the dotted line.
I never figured this to be about housing!
You can live in a condom?
Headline from the Department of Redundancy Department?
Maui: try $600,000 to one or two million.
Part of you can.
Example: Chic, All New 800Sqft 1Bd/1Ba; Pure Decadence In Clarendon! Hrdwd Flrs, Granite And Ss Appls Abound. Gas Fp, Flr To Ceiling Wndws, In-Unit W/D, Alarm, Built In Granite Desk In Bd; Very Well Thought Out! Condo Fee Is Only $233/Mo.Garage Pkg Is Included!amenities & Location 2Nd To None: Rooftop Pool, Gym, 24Hr Conceierge, 2 Blks To Metro, Rests, Whole Foods, Shops, Etc... PRICE: $499,900
And for a limited time there are extra parking spaces for sale at $40,000 ea.
While in larger cities, high rise condo's with high rise prices are all the rage, in smaller cities and rural areas condo prices are plummeting. With laws preventing any new development of mobile home parks, the condo is becoming the trailer of the new millennium.
Where I live cheap condos (townhouse style) are popping up everywhere, generally priced from $72k for a two bedroom two bath to $80k for a three bedroom. This is much cheaper than it would be to buy a trailer home with the land to set it up on.
There have even been two mobile home parks in my county that were changed into townhouse condos. It really is amazing to see what little effort went into doing this. No new roads or utilities were needed. They had only to build townhouses where the trailers once stood. And the new condos payments are actually cheaper than the average trailer plus lot payments are.
My point? While the condos in the sky may be keeping the average condo price sky high, as trailer trash condos become more popular, the average price will be kept down in the future. It seems the condo has a way of becoming all things to all people.
But that part wants to be free most of the time.
The headline was a bit cocked up.
LOL. My thoughts ran along those lines as well.
Where the heck do you live? You can't touch even a single bedroom near me for less than $299k. A decent townhouse costs at least 5ooK.
I got up this morning. It looked so nice out.... I almost decided to leave it out.
York county South Carolina, just across the state line from Charlotte NC.
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