Condo appreciation outpacing that of single-family homes
Posted on Friday, October 30, 2015 at 11:26:07 AM
The appreciation of condo values, particularly in booming tech markets like Denver and San Jose, is outpacing that of single-family homes across the U.S. According to a press release from Zillow, condos are appreciating at 5.1 percent annually, compared to the still respectable single-family home rate of 3.7 percent.
During the housing crash in 2007, condo values collapsed even worse than those of homes - a 33.2 percent and 20 percent fall, respectively. In the last few years the housing market has rebounded in definitive fashion, and though it took longer for condo values to catch up, they have surpassed single-family home values as of September. Dr. Svenja Gudell, Zillow's chief economist, reasoned that "condos increasingly represent a strong-performing, often affordable choice" for younger, first-time homebuyers interested in a city-based lifestyle.
News of growing condo appreciation came as the Mortgage Bankers Association reported that mortgage applications fell 3.5 percent from the week before, perhaps suggesting that those applying for FHA loans include younger consumers looking to utilize residential financing for the purpose of settling down in tech-heavy cities, rather than in more traditional suburban settings