More good news on the national housing front for April compared to the same month last year, nearly four percent more homes sold and prices increased by ten percent. There is one verifiable truth with condo ownership, when housing prices decline, condo values plummet. On the other side, as home prices increase, condo prices move up at a much slower pace. Condos in Davis, California dropped in value by fifty percent in some cases as the overall market only had a twenty percent change during the downturn. That makes owning a condo a long-term commitment. There are certain categorical facts when it comes to owning a condo. The diverse group of buyers that purchase condominiums range from first-time buyers to senior citizens that are downsizing to parents purchasing for their college age kids.
The selling points that attract some buyers to a condo are the same factors that sway many buyers from a condo purchase. Owning a home has no restrictions, you can paint when you want, alter the landscaping as you please and no fear of noisy neighbors above or below your home. With a condo comes a Home Owners Association that enforces codes throughout the developement and collects dues that normally maintains the grounds and exterior of each unit. Some owners like the strict guidelines that come with an HOA. No yard work or concerns with a leaky roof are appealing to that senior couple planning their next vacation or a busy owner with no time to deal with outside issues. Those HOA dues can increase as projects like re-paving the roads or replacing the roofs become necessary.
The other consideration is the difficulty with the resale of a condo. We have a condominium complex in Davis that has a high percentage of non owner-occupied units that make it impossible to obtain financing as an investor. Buyers that intend to occupy in this complex can obtain conventional financing with a minimum of twenty percent down. Those attractive FHA loans with small down payments are not possible in some condominiums based on the risk lenders take with the low owner-occupancy ratios. Condos can be a wonderful opportunity for some buyers that want affordable housing and don’t mind those pesky restrictions. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities.