Phoenix Condo Market Remains Strong
April 11th, 2008 Posted in Condos, Real Estate NewsCondo market remains strong amid troubled housing market
The Southeast Valley condo market remains reasonably strong, despite the overall troubled housing market.
The strength is mainly due to condominium prices, which start in the low- to mid-$100s.
Even resold condos seem to be moving faster than single-family homes, according to data compiled by Arizona State University.
Growth in the under-$200,000 home price range grew to 40 percent of the local resale housing market in February compared with 19 percent of the market for the same period a year ago.
“The traffic here and sales in this market are quite good,” said Lumiere Chandler Condominiums spokeswoman Samantha Shipley.
Lumiere recently held a spring sales gathering in west Chandler to lure potential buyers to tour the property near Ray Road and Priest Drive. The condos start in the $130,000s.
Agents say that condos are attractive to first-time home buyers who want an alternative to a single-family home. Condos also appeal to empty nesters downsizing from a large house.
Because buyers do not own the land, condos free owners from yard work and other upkeep associated with single-family homes. Lumiere’s condo project consists of 320 one-, two- and three- bedroom residences with floor plans ranging from 678 square feet to 1,177 square feet.
Amenities include an on-site fitness center, two resort-style pools and spas, covered parking and garages.
Jay Butler, an ASU researcher who compiles monthly resale data, said he is not surprised by the condo market’s strength amid the rest of the real estate meltdown.
“The townhouse and condo market is a small market with a small inventory,” he said.
With a limited number of existing condos for resale, many condo buyers have to turn to new condo developments.
“Once they’re off the market, they’re off the market for a while,” he said.
There were 620 townhouse-condominiums that changed hands in February, according to Butler’s data. That’s comparable to the 640 sales in January but considerably lower than the 1,050 condos/townhouses that were resold in February 2007.
The number of condo resales fell in the following Southeast Valley cities, as did their median price:
• Mesa, down to 75 sales from 140 with a median price of $140,000, down from $161,400.
• Chandler fell to 30 sales from 50 with the median price falling to $150,000 from $170,830.
• Gilbert down to 10 from 15 with the median price of $182,000 from $205,500.
• Tempe fell to 40 from 50 and the median price slipped to $159,000 from $182,500.
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