Condo Prices

I've been tracking inventory and prices for condos in the southwest for about 4 years now. In the near term I see prices continuing to increase. Since Thanksgiving inventory has been dropping, especially since Christmas. This should put some upward pressure on prices.

This is counter to what some bigger and more sophisticated analysts have predicted. I'm not sure how single family and other areas of the valley are doing.

Just my observations. What are your thoughts?

TomTWI

 

Tom
anything under $150,000. is flying off the inventory list. We have a beautiful home priced at $254,900 and we have been on the market since May 2014, People are buying up all the small inexpensive stuff and using those as snow bird properties or rentals if the community allows.
There is some new construction going on in various parts of town, and the builders are throwing some really good deals. It is hard for a property like mine to compete. But remember if you are buying a condo/townhome in Vegas, buy one in a rent restricted community as it keeps its property value better, and insurance is cheaper. The condo we bought when we first moved here had a great layout floor plan, and a nice location, but not rent restricted and before we knew it we were surrounded by people we didn't want to live next too. and our property value went down the toidie rather quickly.

 

Henderson area seems the hottest area to me. It recovered fast from the lows and now many houses are above $250,000 there. Other areas I see have flattened out from the recovery. Pool homes under $200,00 are hard to find in nice areas. But once you get much above $200,000 the interest slows down. But still a nice recovery from 2-5 years ago.

Condo's are tricky as the maintanence fee could be a tough one. Watch for vacancies as once they are loosing the property they quit paying the association fee and puts the ones paying in a bind. Yes, once the property sells the fees get caught back up but in the meantime it makes for a cah poor association. Talked to one lady and they had so many no pays they didn't have money to open the pool up 2 summers ago. That would suck to pay fees and not get the service.

 

There's substantial bifurcation between what's happening in the current condo market. Compare what's happened with high-rise condos and non high-rise condos since the recession and you'll see what I mean. A problem I see with the overall stats is the two are mixed together - skewing the results.

Bill

 

Ute,

Thanks to you I learned a new word today.

TomTWI

bi·fur·ca·tion
ˌbīfərˈkāSHən/
noun
noun: bifurcation

the division of something into two branches or parts.
"the bifurcation of the profession into social do-gooders and self-serving iconoclasts"
either of two branches into which something divides.
plural noun: bifurcations
"right aortic bifurcation nodes were seen"

 

Good stuff, Tom. Heck, I learn something every time I log in here.

Bill