Many clients ask us ” should I buy a condo or a home”. That’s a great question and not easy for us, your realtors,  to respond to. The reason is because it all depends on your life style and you know better than anyone what that looks like.  When deciding on what’s best for you, it is also important for you to consider the differences between the two.  I have lived in a condo and in a house, each for 5 years so I do have some experience.

So let’s explore a few differences between a condo and a home.

When buying a condo you will need to pay for the condo fee. Many clients ask me ” what does that involve and how much is it?” A condo fee can range from $150 monthly to over $1000 a month. Why is that so  different? Some are old buildings and require a lot of maintenance, others are newer and don’t need any updates and maintenance. Some include utilities like water, electric, gas, heating and cooling, but the combination varies greatly. Some include assessments. Some condos have many amenities like a gym, pool, and concierge, so every condominium is different and the older they are and the more amenities they have, usually the higher their condo fee is.  We can help you determine if buying in a specific building is a smart buy or not. Condo fees also include what is called Master Policy Insurance that covers all the common areas and the walls of your condo. You still need to obtain your hazard insurance to protect your belongings and the inside of the condo but the cost is really low compared to a home, about $250  a year.

A home doesn’t have condo fees yet you will need to pay for your utilities and your hazard insurance will be much higher. Around $1200 a year or so. Hazard insurance will cover the amount of rebuilding your home in case there is a fire. Homes have a higher cost of maintenance. For example, if the roof goes you will need to pay for it vs in a condo the condo reserves would pay for it.

Another factor that will help you determine what’s best for you is your budget and the location where you would like to live. For example do you want a $500,000 condo in Dupont or do you want a $500,000 home in Petworth? Becoming familiar with neighborhoods, space, and price will be very helpful and we will be happy to help you with this.

You also need to ask yourself what your life style is going to look like in the next 5 to 10 years. Will you be ok in a condo or will you need more space and need a home to accommodate your future space requirements?

These are some factors you can think about when trying to decide what to buy. We can certainly help you figure out what’s best for you and at the end you will need to decide what’s best for you and your life.

http://dc.urbanturf.com/articles/blog/ipad_fever_how_apples_newest_creation_is_being_used_to_market_dc_real_estat/1994

And for more information on Trevelyon House.

DC Condos/Coops:
September saw a leveling off of prices across the city for condos and coops and a 5.1% increase in contracts in comparison to Sept 2008.  A 12.6% decrease in inventory means the competition for condos and coops is getting tighter across the city.  Zip codes 20001-20016 are moving quickly and inventory that is well priced is commanding multiple offers and in some cases escalation.  We are still challenged by lenders who aren’t getting documents to the table on time and a very large majority of contracts are FHA. 

It is a tale of two cities in DC however, as many of the condos in 20017, 20018, 20019, 20020 zip codes continue to see a dramatic decrease in price of nearly 30% from this time last year and a decrease in contracts of 10%. There is almost no owner occupant market in those zip codes right now and so the majority of offers we see are from investors.  Complicating matters are bankrupt condo associations with high foreclosure rates making it nearly impossible to finance many condos in those zip codes.  This pushes us back into the cash market where investors are buying at $.50 on the dollar.  

DC condos/coops: http://gcaar.com/uploadedFiles/PDF/ToolKit/Research/Home_Sales_Statistics/DC_Condo_Coop/dccc0909.pdf

DC Houses:
Inventory for DC houses is down 18.5% in comparison to this time last year, and contracts are up 20%.  The average price is down nearly $100,000 and seems to have reached a level that is peaking the buyer’s interest.  Again, it is a tale of two cities however as houses in 20017-20020 zip codes aren’t moving much at all.  Prices continue to fall dramatically in those zip codes.  If however the listing is in 20001-20016 then multiple offers will likely ensue.
 
DC houses: http://gcaar.com/uploadedFiles/PDF/ToolKit/Research/Home_Sales_Statistics/DC_Single_Family/dcsf0909.pdf

There is some indication that the fall market might be setting in.  Traditionally activity begins to slow as we move into November and our “on the ground” reports indicate the last couple weeks are much slower than the previous several.

Keep an eye on interest rates as we move into the winter.  If they remain around 5% the market will likely rebound into next year, even if the tax credit is not extended.

For more details or analysis in your area, call me, I’d be happy to look at your individual situation.