Published September 29, 2020
Why Is Now a Great Time to Invest in Condos?
Here’s why the current condo market deserves investor attention.
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As a real estate professional, this is one of the most common things I hear: “What’s a good opportunity in the market right now? I want to know where prices are slipping so I can buy in now and sell at a profit later.”
As you can see in the video above, I’m standing in front of a beautiful condo where we just sold a unit—a total win-win transaction for buyer and seller. It’s fitting because my message for you today is that there’s arguably no better opportunity in our market right now than investing in condos.
"An 18% to 20% drop now means an 18% to 20% increase once we clear this rough patch in the market."
In some markets, prices are down year over year by as much as 18% to 20%. Why has this real estate market fallen, and why should you interpret that as a huge opportunity?
Naturally, the pandemic has had a lot to do with it; for health and safety reasons, buyers have shied away from tight, enclosed living spaces. Also at play are recently tightened financing requirements, which have presented a real challenge for many buyers, especially those at the entry-level price points. That means if you’re able to get qualified for your mortgage and supply a 20% or 30% down payment (we can connect you with the best lenders), you’ll be one of the select few buyers out there who can truly take advantage of this condo market.
Another reason why the condo prices have been declining is that this market had already been experiencing a run-up over the past two years. Of course, the real estate market is cyclical, and right now is a great time to jump in. Purchase a condo, rent it out for a year, and ride out the wave; when we start seeing more positive indicators for the pandemic, or once a vaccine is released, there will be an increase in prices. Remember: An 18% to 20% drop now means an 18% to 20% increase once we clear this rough patch in the market.
If you have any questions about this or any other real estate-related matter, please give me a call or send an email. I’m always happy to hear about your situation and help you carve out a path forward.
