Higher apartment rents and easier lending terms may prompt a second look at buying attached home investments. All of the supply and demand dynamics are in place, including the spring home buying season on the horizon, for the 2015 U.S. condominium market to experience a lift. Existing condo sales dipped 2% in 2014 from the previous year. Reflecting the growing lack of available product, the median U.S. price of a condo was $204,300 in 2014, up a modest 5% from the previous year and 17.6% higher than 2012 (National Association of Realtors reported). Condo hunters and investors, however, faced a reality check last year as young households largely remained focused on home rental options and condo investors were less active, in part because bargains were not as commonplace as in the two previous years.
Excerpts from the Article:
With the spring home buying season at least on the horizon, all of the supply and demand dynamics are in place for a lift in the U.S. condominium market in 2015.
Early 2015 trends suggest home buying activity could gain some traction this spring after less-than stellar sales last year.
Existing condo sales dipped 2% in 2014 from the previous year as available supply inventory dipped to 4.5 months by the end of the year, falling another 2% in January. A six-month supply traditionally reflects a stable market.
Citation and link:
Drummer, Randyl. “Will Condo Development Ripple Become the Next Wave In 2015?” CoStar News., 25 Feb. 2015 Web. 27 Feb. 2015.