Limited inventory of homes, popularity of urban life cause runaway condo appreciation
By Jeff Sorg, OnlineEd Blog
(October 27, 2015) – Condos are appreciating at a rate of 5.1 percent, compared to the 3.7 percent appreciation among single-family homes. Condos are appreciating faster than single-family homes where job markets are thriving or urban renewal is underway, according to the third quarter Zillow® September Real Estate Market Report[i].
According to Zillow, during the Great Recession the typical single-family home lost 20 percent of value; from peak to bottom, the typical condo lost 33.2 percent of its value. In September, according to Zillow’s data, condos are appreciating faster than single-family homes in nearly two-thirds of the top 35 most populated housing markets.
“The housing bust hit condo values hard, and over the past few years, buying a condo wasn’t always considered a good investment compared to a single family home,” said Zillow Chief Economist Dr. Svenja Gudell. “But that’s changing, and condos increasingly represent a strong-performing, often affordable choice, particularly for first-time buyers interested both in homeownership and in keeping a lower-maintenance, city lifestyle.”
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