It’s no secret that home values have skyrocketed nationwide. We can blame the low mortgage rates and a limited supply of available housing for this.
But it’s not just single-family home prices that are going up. Condominium prices are also on the rise, and in June they hit a nine-year high, according to Redfin. Last month, the median selling price of condos increased 20.3% from a year ago, and that figure now stands at $ 304,000.
What is also remarkable is that 42% of the condos sold for more than the asking price. And condos have left the market at their fastest pace ever, in just 22 days on average. In contrast, in June 2020, condos took an average of 43 days to sell.
Start your journey to financial success with a bang
Get free access to the selected products we use to help us meet our financial goals. These fully vetted choices could be the solution to helping you increase your credit score, invest more profitably, build an emergency fund, and more.
By submitting your email address, you consent to our sending you money advice as well as products and services that may be of interest to you. You can unsubscribe anytime. Please read our privacy statement and terms and conditions.
Should you buy a condo now?
If you are unfamiliar with what a condo is, it is a unit you own in a larger building. When you buy a condo, you are responsible for the maintenance of your unit, but you are not responsible for the maintenance of common areas and other building structures outside your unit, such as its roof or its walls. elevators.
When you buy a condo, you usually have to join a Homeowners Association (HOA) and pay a monthly membership fee to cover the maintenance of the common areas. You will need to factor in these costs in addition to your monthly mortgage payments.
Even though condo prices have gone up, you could still spend a lot less on a condo than on a stand-alone home. So if you are anxious to buy a home but are on a budget, a condo might be a good solution.
Plus, if you’re not particularly a handyman and don’t want to find yourself stuck doing tons of maintenance on your property, then a condo might be right for you. While you may need to maintain the interior of your unit, you won’t need to mow the lawn, remove snow, or do the exterior maintenance that comes with owning a freestanding home.
On the flip side, a condo will likely give you a lot less space than a freestanding home, and you usually won’t have much or no outdoor space. Some condos have patios or balconies, but if you want a huge private yard for your dog, don’t expect a condo to provide one.
And speaking of dogs, some condos aren’t that friendly to them. It is common for HOAs that establish condominium rules to ban dogs or certain breeds (i.e. those with a reputation for being more aggressive).
And it’s not just dogs that can be banned if you buy a condo. Depending on the rules set by your HOA, you may be prohibited from running a business from your home or from renting it out for the short or long term. Before buying a condo, make sure you know all the rules and restrictions so you don’t get unhappy with your lifestyle.
Buying a condo could be a smart move, and it could help you get your foot in the door in today’s real estate market. Don’t be surprised if you end up paying more for this condo than you initially expected, given the rising prices.