If you’ve been thinking about moving up from your condo to a single-family house, there is no better time than now!
High Price for Your Condo
As real estate prices continue to rise all over the Peninsula, the market for condos, which are generally less expensive than single-family homes, has skyrocketed. For example, in Palo Alto, condo prices have more than doubled in the last five years!
Of course, single-family home prices are higher, too, with an increase of 20.7% from 2013 to 2014, but condo prices are seeing even greater appreciation, with an increase of 34.2% over the same time. The growing numbers of downsizing Baby Boomers and young couples and singles who are entering the market with cash from technology liquidity events continue to drive the demand for condos.
Yet, even though prices and demand are high, the condo inventory is distressingly low. If you’ve ever studied economics 101, you know that those conditions mean that owners are in a position to get more than ever before for their condos.
Low Mortgage Interest Rates for a Home
While you can get a top price for your condo, you can also get a great mortgage rate for a home now. Currently jumbo loans are in the 4% range for a 30-year fixed and in the 3% range for a 7-year ARM—still around historic lows. Conventional wisdom tells us that these rates won’t be around forever, and now is an opportune time to lock in a great rate for a house that you will live in long-term.
Less Demand for Higher Priced Homes or Fixer-Uppers
While there is strong demand for small, less expensive “starter” homes and brand new homes, there is less demand for homes that are a few years old or fixer-uppers. If you’re looking for a mid-sized home and don’t mind one that has a few years on it, you’ll find less competition. The same is true for homes that are too nice too tear down completely, but need a lot of work. This is the sweet spot in the market now where you have a chance at getting a great home without the frenzy of multiple, overbidding offers that have become prevalent.
Working with an agent who is familiar with Palo Alto and Palo Alto condos will insure you get the most money for your condo, and help you find a the perfect single-family home for you. If you want to find out how much your condo is worth in today’s market, I’d love to meet with you and give you a no-obligation analysis.
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