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April 20, 2014

Condo Revival Slowly Emerging?

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Condo Revival Slowly Emerging?

The condo market is on an upswing, but sales are still more than 30 percent short from its peak.

From 2009 to 2013, condo sales increased more than 55 percent, while total existing home sales rose by 29 percent during that time period, according to National Association of REALTORS® data. In comparison, during the boom years between 2001 and 2005, condo sales rose more than 50 percent and existing-home sales increased by 37 percent.

While the share of condo sales to total existing-home sales is nearing pre-recession levels, the number of sales is still not at its peak, the CoStar Group notes.

“Today’s condo market does not involve the irrational speculation of the mid-2000s, when renters fled apartments to get a share of the expanding home price pie,” CoStar Group reports. “A portion of the current sales are often to foreign investors in condo-rich markets like South Florida and to current home owners looking to downsize.”

In its latest existing-sales housing report, NAR reports that the median existing condo price was $198,600 in December, up 10.9 percent over year-ago levels.

Source: “A Look at the Growing Condo Market,” CoStar Group (Jan. 31, 2014)

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