Condominiums have always been a good alternative to single family homes. But the overall price drop in Connecticut seems to have favored single-family homes over condominiums.
According to a report released by the Sound Investment Consultants, the sale of condominiums lagged in August due to price drops, whereas those of single-family homes increased.
Home sales in New London County increased by 11.4 percent from last year, but condos were off by one third, The Day reported, adding that the typical condo transaction dropped nearly $25,000.
"These days, you can buy a decent house for what you can get a condo for," Les Bray, owner of the real estate consulting firm told the Day. "It appears the single-family market may have entered a more stable period with unit sales in the lower price points leading the way."
The strongest sale last year was recorded in the $300,000 to $399,000 range and in the $750,000 to $999,000 range. Whereas homes in the $500,000 to $749,000 saw less movement, The Day reported.
In several other markets, increasing price and interest from foreign investors are boosting the demand for condos. According to The Los Angeles TImes, in Southern California more than half the units in Ritz-Carlton Residences are sold out due to increased investment from foreign investors. Buyers from China and South Korea are some of the recent buyers of this plus condo, the report said.
Besides, increasing prices have helped stabilized the market, that was at a standstill during the recent housing slump.
"The market is stabilized. Prices are going up," Alan Mark of the Mark Co., a firm that tracks condo sales told The Los Angeles Times. According to him the average price of a downtown L.A. condo is 18 percent higher than it was last year.
However, low inventory is expected to cause further increase in home prices, as condo construction stopped in many urban markets during the slump.
