AgentIndustry News

Jumping off the condo bandwagon

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

I have to admit the recent sales numbers for condominiums from the National Association of Realtors had me scratching my head.According to a May report (published in June), existing condominium and co-op sales increased 6.1 percent to a seasonally adjusted annual rate of 520,000 units in May from 490,000 in April but nevertheless were 8.9 percent below the 571,000-unit level in May 2008. What surprised me was the amount of volume left in the condo market, especially when it's so difficult to get financing for one of these. Indeed, in some places like South Florida, it's probably easier to climb through the eye of a needle than to get a lender to offer a mortgage for a condominium. So what's a potential condominium investor to do?About the only condo sales moving quickly to fruition these days are all-cash deals. Maybe that's because NAR also reports that the median existing condo price had deflated to $173,800 in May, a 21.9 percent drop from a year earlier. That means much more condo ...