After being hit hard by the recession some six years ago, the market for condominiums may be getting back on track. Condos were hit harder than most other segments of the real estate market after the financial crisis, including single-family homes. As a percentage of total sales, condos fell two percent, to only 10.7 percent, during the crisis and have struggled to regain ground since. For several years now sales have been stagnant, however this may no longer be the case. After gaining some momentum during 2013, condo sales have rebounded back to 12.3 percent of total sales, according to Sam Khater, CoreLogic Deputy Chief Economist. Among the hottest condo markets in the country is our own Naples, Florida, which has seen condo sales grow over 10 percent in the last year.
One of the largest drivers of this growth is young people. Those ages 20 – 24 account for a large portion of the growing condo market. Increasingly uninterested, or unable, to purchase their own home, this bracket often looks for condos in urban areas to satisfy their housing needs. As has been discussed in previous postings, it can be very difficult, given current lending standards, for someone of this age to qualify for a loan to purchase a house. For this reason, many young people, particularly in big cities like Miami or Denver, look to the condo market for housing options. People of this age also don’t always want to make the commitment to a house in a certain location, as their job or personal preferences may take them elsewhere.
As the condo market begins to heat up again why not check out what the Miami condo market has to offer? Contact a RE/MAX agent today if you have any questions about Miami condos, or Miami real estate in general!