I have a question for everyone, what is driving condo prices higher and higher? I was asked this by a client the other day, something that hasn't really crossed my mind. Well it did, but never to the point I could come up with a concrete answer. I thought about it and came to a few conclusions and a few more questions.
Around the country baby boomers are retiring, kids moving out to their college and now they want to move out of the suburbs and doing so in record numbers. Could this movement be artificially boosting condo prices? Is this just a current trend? I don't think so.
What is really increasing the prices then? Construction costs are rising and have been for some time now. Developers base cost of units on how much they cost to build with a small portion of profit. Also, developers offer significantly lower prices in the earlier stages of the project to entice reservations to get the project off the ground and slowly increase prices as they sell more and more.
Condo sales are driven by the amenities they offer, the fantastic locations, maintenance free living, and the fine finishes. Condo's usually are built in very desirable locations that people want to be. Ditching the mower and snow shovel is also very appealing. Condo residents enjoy this lifestyle by not being tied down to maintaining their home. They have time to walk to nearby art gallery or symphony whenever they please. On whim travel out of state without getting a house sitter. These benefits don't have a price tag to some consumers.
What do you guys think? Any questions you have I may write a topic and address it.
An agent who understands the CONDO market, Adam is professional, dependable, always prepared, enjoys good company and make those around him feel comfortable. Your real estate goals become his.
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Great post, Adam. By the way is 80 Dodge still offering preconstruction pricing?
Yes Roy! 80 Dodge is still offering discounted preconstruction pricing! Thank you for asking. Anyone else have feedback?
Adam, The info below comes from NAR. Changing demographics are a big part of this gain it would seem. Perhaps people are realigning their priorities and would much rather go to the opera rather than mow the yard, stain the deck, rake the leaves....
Median value of single family homes vs. condos