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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Jeff Sorg is a co-founder of OnlineEd®, a Web-based vocational school founded in 1997 where he also serves as Corporate Secretary, Chief Operating Officer, and School Director. Sorg holds vocational instructor licenses in Oregon, Washington, California, and Nevada and has authored numerous pre-licensing and continuing education courses. Sorg was awarded the International Distance Education Certification Center’s CDEi Designation for distance education in 2008-2018.
OnlineEd® provides real estate, mortgage broker, insurance, and contractor pre-license, post-license, continuing education, career enhancement, and professional development and designation courses over the Internet.