Condo Sales Take a Turn for the Worse

Posted by: Sally S. | Jan 09,2008

Visiting family in Oregon recently, I was shocked to hear that the bottom had dropped out of the condo market. Portland, Oregon had a booming new condo business and saw skyrocketing sales in refurbished, vintage flat-style condos over the last decade. Just a few years ago, 100 condos were sold each month in the Rose City. Now, the average number of condo sales each month has dwindled to eight- and experts predict the condo market will take a nosedive in 2008.

 

As a result, more condos are for rent now than probably at any other time in Portland’s history. Some of these were put up for rent by condo owners who are trying to make their mortgage payments after purchasing a new home and finding that they can’t unload their condo. In addition, there are developers who have turned their for-sale condo developments into apartment rentals instead. And Portland isn’t alone in feeling the condo sale downturn. Other cities report similar problems with their condo sales markets:

 

• Memphis, Tennessee area condo sales were down by more than 25% from 2006 to 2007. The city’s downtown area saw an even bigger downturn, with condo sales down by 45%.
• Connecticut condo sales were down 10% for the year, plunging 19% in the month of November. Ouch.  

 

The national average price for condo sales declined more than 2% last year from the year before, dropping to $148,472.

 

If you’re homeowner and trying to sell it may be a struggle; if you’re a buyer, it’s your market. Get quotes for competitive home loans from multiple lenders at LowerMyBills.com. 

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