The Condominium Market
by Jim Scott

The Condo Market in Mission Hills and Hillcrest
     
During the past recession condominiums have been  considered a poor investment relative to single family homes.  They can be difficult to sell and have suffered substantial losses in value over the past seven years. For example, during the seller’s market of 1989 173 condominiums changed hands in the 92103 zipcode. There were only 132 and 130 transactions respectively in 1995 and 1996. Prices also declined.       
     
This column will address two points.  First, how  condominiums  fared as investments compared to single family homes during the past eight years.  Second, the future prospects for attached housing in the 92103 zipcode over the next five years. 
   
Condominiums located in the 92103 zipcode have gone down in price during the past recession at a lesser rate than single family homes. During the current market recovery, prices for condos have increased at a lesser rate than homes.   The conclusion is that condominium prices have been less volatile than home prices over the past few years.  
     
The future of the condomarket has never been brighter in the Metro area.  There are two reasons for this.  First, single family homes are moving up in price which creates more demand for condominiums as buyers are priced out of the market. Second, the supply of new condos will be restricted by two additional factors.  Most affordableland available for building attached housing in the Metro area has been developed.  Fear of construction defect litigation and restrictive lending policies will continue to discourage any new condominium construction.
     
The factors noted above are a receipe for rising prices.  In the past, attached housing prices have been  negatively influenced by chronic oversupply and from construction defect litigation.  With those issues now rendered less significant, condominiums will be excellent investment vehicles over the next five years.     
              
Our Property Management Offer
     
Last month in this column I offered three free months of property management if you try out our professional service. The response to this offer was so positive that I am offering it again for the month of May.  Mr. Kim Roessler is the full-time management professional at Scott & Quinn.He can customize his management program to your special needs and budget.  Call Kim at 291-7002 for details on this special offer.     
 
 

You can reach Jim Scott by email or at his office at 1111 Fort Stockton Drive. Jim's direct line is 885-9511. Jim has been a homeowner in Mission Hills since 1976. Scott & Quinn is the oldest full service real estate company in Mission Hills. There is also a professional property management team on staff.