Condos Are Hot Right Now; Are They the Right Move for You?
Buying a condo is popular these days. According to a new report from real estate brokerage Redfin, the average condo sold for above asking price in June — only the second time that’s happened in the last nine years.
Condos also sold faster than ever in June, with a mere 22 days on the market, on average.
According to Daryl Fairweather, chief economist at Redfin, it’s a sign that rising single-family home prices are pushing buyers out of the market.
“Many buyers who have been priced out of the market for single-family homes have turned to condos,” Fairweather said. “Earlier in the pandemic, many buyers shunned small condos in favor of large detached homes with space for offices and homeschooling. But now that many Americans are vaccinated and some are returning to the workplace, extra space isn’t as necessary and the benefits of shared amenities like a gym or a pool are more attractive. And the biggest benefit of condo living is the more affordable price.”
Are you considering buying a condo over a higher-priced single-family property? Let’s look at it from both sides of the equation.
Why buying a condo might be smart
The biggest advantage in this market is that condos come with lower prices. While $304,000 is no bargain, it’s much lower than the average single-family home price, which sits at $405,000, according to Redfin’s data. What’s more? Condos are sometimes cheaper to insure, too, saving you even more money in the long run.
As Fairweather mentioned, there are also community amenities you can take advantage of with a condo, and in many cases, there’s a lot less upkeep, too. Your community association will usually take care of exterior maintenance, like mowing the lawn, cleaning out the gutters, or power-washing the brick. That means less hassle and less spent on maintenance over time.
Why you may want to think again
Obviously, condos aren’t perfect. They’re usually smaller, and you may have less control over your property (there are often very strict HOA rules).
Condos come with added monthly fees, too, which go toward maintaining the community and paying for the HOA.
Finally, you typically have less privacy with a condo. Your walls are shared with other units, and you may have neighbors living above, below, and very close beside you. Their music, parties, and even just their newborn baby might keep you up at night (or vice versa).
The bottom line about buying a condo
Condos can be a good option if you’re on a tight budget, but they’re not perfect by any means. Still think one is the right move for you? Talk to your real estate agent, and get in touch with an Embrace Home Loans office in your area. They’ll walk you through the process.