Fresno Condos: A Good Buy?

One of the questions often asked by clients is, "Are condominiums a good investment in the Fresno County area?”  

Current Price:

Certainly, the price is compelling.  Investors, first time home buyers and retirees are currently picking up Fresno County condos for an average of $106,354 (approx. $74 per square foot).  That means mortgage payments hover around $800 for a 1,200 square foot condo.  For many buyers, condos provide an extremely affordable and attractive option.
 
So price isn’t the question right now.  But, should you buy is the question.  The Central Valley is traditionally a single family home environment.  Is there enough demand for condos in Fresno? With volatile real estate swings how does the value of condos compare with traditional homes?

Current Demand:

Well, if there was ever a time to judge the staying power of condos through tough real estate times, it is now!  The statistics are interesting.  Comparing single family home sales from the height of the real estate boom (typically viewed as 2005) to today, the number of homes sold has remained relatively constant.  When viewing Fresno County condo sales under the same parameters, there were 62% less condos sold in the first half of 2010 than in the same months of 2005.  One explanation for this reduction in sales is the relative halt of apartment conversions into condo developments.

Current Bank Owned Sales:

This would seem to suggest that condos are a much more questionable investment than traditional homes.  Yet, when you dig deeper you find that of these 2010 sales, the percentage of single family homes and condos sold as foreclosures and short sales is nearly identical.  63% (2,445 of 3,851 sales) homes sold in 2010 to date were foreclosures and short sales compared to 62% of condominiums (85 of 137 sales). 
 
Also, while the numbers are certainly jarring for those owning homes, the overall worth of these two different types of properties dropped at a similar pace in our area.  The average single family home purchased today would be 54% less in value in Fresno and Madera County than in 2005.  The average condo is close behind with a 58% reduction in value. 

Overall Value:

So, yes, condos plummeted in value within our area.  But, they are keeping pace with traditional home sales in percentage of value.  Prices for both types are currently flattening out.  If you compare sales in January 2010 vs. May 2010, the average price per square foot of both types of homes rose $4 each.  In Fresno County, condos in January sold for an average of $70 per square foot and last month sold for $74.  Single family homes selling for $97 per square foot increased to an average of $101 for May. 
 
So, bottom line, for those who may desire the simplicity of a condo but worry that they aren’t as secure an investment as a home, the numbers should speak for themselves.  There may not be as many condos on the market today as in the past, but they are here to stay!   

• Average Price of Sold Homes in May 2009 vs. 2010 - $155,311 vs. $159,189 (2.5% Increase)
• Sold Homes in May 2009 vs. 2010 - 990 vs. 892 (10% Decrease)
• # of Foreclosures and Pre-Foreclosures Sold in May 2009 vs. 2010 - 711 vs. 503 (30% Decrease)
• Avg. Loan Percentage Rate in June 2010 – 4.60% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

8645 N. Ann Ave.
Fresno, CA 93720

• $300,000
• 4 Bedrooms
• 2 Bathrooms
• 2,290 sq. ft.

Clovis North Schools!  Built in 2005, this 4 bedroom, 2 bathroom home is located near the Clovis walking trail in a quiet neighborhood.  Large, open floorplan with upgraded tile flooring throughout entertaining areas.  Kitchen features granite counters, upgraded cherry-stained cabinets, gas stovetop, walk-in pantry and eating bar overlooking large great room.  Isolated master bedroom overlooking backyard features 8x11 walk-in closet and separate soaking tub and shower.  Freshly painted with high quality finishes in an excellent location, this home is well-priced and move-in ready!

Haiti Engineering Escapades!

For the second year in a row, Aaron Quaresma, structural engineer extraordinaire and Harold's son-in-law, headed to Haiti to serve in missions.  Volunteering with the organization Engineering Ministries International Aaron joined a design group comprised of architects, surveyors, land development, wasterwater and other experts to spend a week assisting in Haiti.
 
The task was to complete designs for two new Haitian communities, (including 7 home designs, community buildings and overall master plan layout) in a week.  These professionals donate thousands of dollars worth of expertise to provide designs to organizations in need.
 
Aaron's team was housed at an orphanage for the week which presented the unusual challenge of designing while surrounded by fascinated children who wanted to play!  Adventures included bathrooms with tarantulas, spotty internet connections, jolting 8 hour trips on unpaved roads and running out of shower/bathroom water for the last four days.  While exhausting, it was an experience that Aaron would repeat again in a heartbeat!
 
Caption:  Bob, an orphan with specials needs, was a constant visitor during the week and is here assisting Aaron with some serious structural work!

Blog Tags

• First Time Home Buyer (1)
• Condo (1)
• Fresno Market Statistics (7)
• Foreclosure (4)

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