I’ve noticed over the last year or so that while SFH values have increase 20–30% since Covid hit condominium values in the real Bay Area have actually declined. I’m currently seeing units on the Peninsula priced ~20% below their 2018 highs sitting on the market for >30 days. $/sqft appears to be in the $600–800 range vs $1200–1600 for SFH.
So the question is, are we seeing a buying opportunity for condos/townhouses? I can rationalize the disconnect as buyers putting a premium on SFHs during Covid due to the need for additional space to support WFH, distance learning, home gyms etc etc. As life returns to normal and people become busier it seems like the convenience/amenities of condos/townhomes should become more attractive and the price difference w/ SFHs return to normal. It would be interesting to track the ratio of condo $/sqft to SFH $/sqft in different zip codes to see where we are currently relative to the historical mean.
Timing is everything. Eventually prices of condos will bottom. The question is, is it the right time to buy condos? Prices of condos include the facilities, if nobody is using them, excluding the cost of facilities, is price still reasonable? Anyhoo, I won’t buy any condos/ THs that share air ducts.
I am buying condos. Condos are the last to go up in value and the first to go down. Since they are still struggling is bullish for housing prices. This means there are legs in he bullish housing market.
Seattle is the same way. I debated selling and buying 2-3 condos in Cap Hill near where CHAZ was. The condos in that area are still toxic and not selling very well. From a pure $ perspective, it’d probably be the right decision. I also have a lot of mistrust for Seattle city council which makes it riskier than it should be.