Condo Buyers Search for Best Deals in Slow Market

The general public typically looks at real estate trends on a national scale because that is how the media generally approaches the topic.  Then or course there are your local news channels that can dial down on the condo market from a local perspective.  Overall though the media has been focusing on the down turn of the market and the effects on prices.  Many do not realize however that not all markets have been affected in the same way or at the same time.  Some have hit bottom and recovered to a healthy absorption rate and other have yet to see the slowest times.  The markets with the largest increase in sales and prices are usually the ones to get hit the hardest when things slow.  The markets that remain relatively healthy without a large influx of investors and speculators usually do not feel the pain as badly during a down turn.    To see how this really works for condos in various regions around the country, let’s take a look at some markets that have been affected differently.    San Diego Condos – The real focus of the San Diego condo market has been on the rapidly expanding downtown area.  The rise of Petco Park helped to revitalize the East Village area as 5 new condo projects have sprung up right next to the new ballpark in the last few years.  5,800 condo projects were added to downtown in the last five years with over 6,000 more planned for the next few years.  The long term outlook for a city like San Diego can be relatively positive due to string demand.  Although prices have doubled in the last few years in downtown San Diego, they have remained flat and probably will for another couple years.  We may even see more significant price decreases which will open the doors for bargain hunters…it being a buyers market and all!  Phoenix Condos – This is a market that has been seen as a retirement destination and luxury golf haven for single family homes.  Over the past few years due to the rapid ramp up of the housing market, developers have begun to go vertical and create more urban villages in the Phoenix, Tempe, and Scottsdale areas.  Many people coming to the Phoenix area are not just looking for another home in the suburbs but to take advantage of the amenities of luxury high-rise condos.  As in other markets however, the tide has shifted a bit and we are seeing more project be put on hold until things improve.  For projects that are already out of the ground and gone through the sell out phases, speculators who are trying to unload condos are giving them up at the same prices they purchased them for in 2005.  Las Vegas Condos – Las Vegas will always be a different market than any other…it’s a different city than any other in the country…I think we can all agree to that!  The Las Vegas luxury condo market has still held strong and prices are likely to remain that way.  Over the next few years though buyers will have great inventory to choose from as early buyers who locked in the good pre-construction prices start selling.  The high end of the market has held strong due the weaker dollar encouraging more foreign investment.  I have always wondered who would want to actually live in Las Vegas, but there are many who absolutely love the city.  Visiting is great, but living there might be too much for a guy like me!  Miami Condos – Miami has of course been the household name in housing market discussions, especially when referring to condos.  Let’s face it, Miami is a great place to but has been hit hard by all the usually factors:  too many speculators, too many units, rising construction costs, insurance costs, tightening bank restrictions and pre-sale requirements, etc…the list goes on and on.  The real issue is that projects are still moving forward with fewer people to buy the condos.  There are another 20,000 units planned and approved through 2008…we’ll see what percentage of those actually come out of the ground.  The real question that remains is whether buyers will find good deals on condos as a result of the slow down.  Everyone really wants to know if this is a good time to buy.  The answer is really “YES”.  This of course assumes the buyer is not trying to flip for a profit but actually seeking to find a home to live in.  The deals are there and will continue to expand over the next few years.  This does not mean there are not good deals to be had in the new condos as well!  Keep searching…the condos you are looking for are there in mass quantities!