Condo Sales Are Rising
Demand from home buyers has been through the roof over the past year. Mortgage rates fell to record lows at the beginning of 2021 and have hovered near there ever since. Many home buyers saw the drop in mortgage rates as a great time to buy a new home and lock in low interest rates over the life of the home loan. In turn, this caused homes to be purchased of nearly every type in nearly every market. At the same time, inventory of available homes to buy has also been incredibly limited. The high demand and low supply has caused home prices to skyrocket, which is leaving some home buyers feeling left out. For home buyers who are feeling priced out of the current market, there are other options available and many are turning to them. Condo sales are rising around the country and there are good reasons why.
Home Buyers Turning to Condos
The real estate boom started back in the summer of 2020. However, for most of last year it was really only single family homes that were in super high demand. That all started to change in 2021. Over the first half of this year condo sales have started to increase. As we get further into 2021 condo sales are increasing across the board. In fact, nearly double the amount of condos were sold in June as were sold in January.
This data would be easy to dismiss for some sort of seasonal trend if you did not account for the overall data for home sales. In typical years it is true that home sales are slower in the winter months and pick up steadily as the weather turns warmer. Single family home sales have not followed that trend this year. The lack of inventory and rapidly rising prices caused single family home sales to decline to their lowest levels of the pandemic in June. There is something truly unique about the increased popularity of condos amongst home buyers this year.
Why Condos are Popular with Home Buyers
There are a few reasons why home buyers are increasingly turning to condos as we get further along in 2021. The first big factor is price. As we have already mentioned, single family homes have started to skyrocket in price. In comparison, condos are much more affordable. According to the latest data, the median sales price of a single family home is about $370,000 compared to a condo which is about $311,000. That is almost a difference of $60,000. That means a significantly smaller down payment and lower monthly payments. For this reason condos are becoming especially popular with first-time home buyers. They make wonderful starter homes.
Another reason why condos are increasing in popularity is because of the ease of owning them. Condo owners are only responsible for the four interior walls of their condo, their ceiling and their floor. That means if there is anything wrong with the exterior, the roof, or even the landscaping it is the duty of the condo association and not the owner. This is perfect for busy individuals or even retirees who do not want to have as much responsibility. Additionally, many condo complexes have great amenities for condo owners. It is wonderful to have access to large pools, fitness facilities, and recreation rooms without having the responsibility of maintaining them.
Final Thoughts
The real estate market is still a sellers market, but many home buyers are finding that condos are proving to be a great opportunity. Even as single family home prices continue to increase, condo sales should continue to increase as more and more home buyers recognize their combination of convenience and affordability. If you have been thinking about buying a house, but are intrigued by the benefits of owning a condo, contact us. The team at Streamline Realty can walk you through your options and help you decide if buying a condo is right for you.
