Will Your Condo Retain Its Value?

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Will Your Condo Retain Its Value?
Five Tips for Edgy Buyers

By Lauren Baier Kim

The U.S. condominium market has been good to real-estate investors. In 2004, the median sales price of an existing condominium surpassed that of a single-family home for the first time, according to the National Association of Realtors. This trend has held steady so far through 2005: The median sale price of a condo was $213,600 in September, compared with a median price of $212,200 for a single-family home, NAR reports.

The market for condos remains strong -- condo-sales activity in September was 10.2% higher than the same month last year. But some question whether it will last. "There's a lot of supply, and the demand has been significantly supported by speculative buyers rather than occupants," says Chip Brown, senior vice president and co-director of production of CWCapital, a national multifamily and commercial real-estate lender based in Needham, Mass. Speaking of his firm, he says, "We've gone from being selective to extraordinarily selective in thinking about financing condo projects."

-- November 07, 2005

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