Condo vs. House: Which property has appreciated more in 2012?

Thanks to the two latest graphs below from The Cromford Report, we can tell a lot about the differences between the single family (SFR) market and the condominium (condo) market here in the East Valley – which includes Scottsdale, Paradise Valley, Fountain Hills, Phoenix, Tempe, Chandler, Mesa, and Gilbert.

Single Family Median Sales Price May 2012 Condo Median Sales Price May 2012

For one thing, the median sales price of condominiums in the East Valley has actually appreciated more over the last year than the median sales price of single family residences has.

On the other hand, as expected, single family residences are currently selling at a higher median sales price, in part because its median sales price never sunk as low as the median sales price of condos did.

Neither statistic is necessarily more important than the other, but both of them remind us that buying a home is a complex decision. So, before you buy your next home, ask yourself a few questions.

Condo vs. House

1. When I eventually sell this home, will I look back and care more about how much it appreciated, or how much I enjoyed the lifestyle it provided for me?

2. Which is more important? Paying the lowest possible price for a home, or paying the best possible price considering the amenities the home has?

3. In order to debate the true cost of buying a lower-priced condominium vs. a higher-priced single family residence, have I considered the higher costs of owning a condominium (e.g., higher homeowners association (HOA) assessments, higher mortgage interest rates (sometimes), higher down payment requirements (sometimes), higher upfront closing fees, etc.)?

4. If a home’s potential for appreciation is important to me, am I considering its short-term and long-term potential?

If you’ve purchased a condo or single family residence in the last five years, I’d love to hear from you now. Which type of property did you buy, and why?

Source: The Cromford Report

If you enjoyed reading this article, subscribe here
to receive the next one we post by email!

About Doug Hill

Doug Hill is an Associate Broker with Coldwell Banker Residential Brokerage, and founded The Hill Group with his wife, Kirsten in 2003. Combined, they have helped over 1,000+ clients buy and sell homes in the Phoenix Metropolitan Area. Doug holds a Bachelor's Degree in Business Management & Economics, and is a Navy veteran. He is an active member of the Southeast Valley Regional Association of Realtors on their Professional Standards Board, and he and his wife have had the #1 team for Coldwell Banker in Arizona for multiple years in a row. He loves to read, travel, and spend time with his family and friends.
Posted in Arizona Real Estate News, For Buyers and tagged , , , , , , , , , , , , , , , . Permalink.