No. of Recommendations: 3
Condo prices always seem to be the first affected in a housing downturn. One of the problems with condos is that the original people move out, and more and more units turn into rentals - with people living there who really don't care about the building or other tenants. Prices for rentals always seem to drop quickly, too, in a downturn.

Yet, folks like condos in many areas. Often, you can rent one for less than the cost of buying one - the owner eating the difference.

NY prices and east coast prices went up 15% a year for 6 years, outpacing normal price increases. They are coming back down to Earth.

Yes, things were 25 to 50% too high in many markets, meaning they will drop 25 or 35% by the time things are done - depending upon the market, location, quality of unit, location of unit...and whether Single Family housing is available and for how much. NY City will always command a premium. Suburbs can drop further.

The 'bubble' is deflating, and yes, those who bought high might suffer. On the other hand, mnay who bought 'low' six years ago are still in good shape. Not as rich before, and if they didn't use the house as an ATM machine, they are still ahead of the game.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.