The Rise of Condominium Developments

Condominiums are no longer for the retiree and well-to-do. Whether a first-time home buyer looking for a safe place to raise their children or the young professional looking for luxurious living, the growing market of condos offers another option to buyers of every kind. While most may consider condos to be new or extravagant, the fact is condos do not have to be. There is a growing trend of reconstructing rental units into condominiums and the market is taking it in stride. Condo conversions are, however, causing a decrease in the rental inventory in major cities, such as Las Vegas, Phoenix, and Miami. This is not stopping developers, however, as the condo conversions are priced affordably and are being snatched up by first-
time homebuyers everywhere.

Developers are purchasing run-down apartment buildings in properties that are close to jobs and schools, converting them into affordable condo units, and refurbishing them with more extravagant upgrades, such as carpeting and stainless steel appliances. They then will revamp the common areas and put them on the market. To help them sell, many are including incentives and even offering to pay the closing costs for buyers. Many first-time homebuyers and retirees
are purchasing them as they feel more secure.

Luxurious condos are also on the rise. While the ownership of these are centered more around a buyer looking for a quality lifestyle, extravagant amenities, and great locations, there are many that are willing to pay the price. In Florida last year, a 4,800 square foot condominium was sold for $4.65 million dollars. In 2005, California experienced a 90% jump in condominiums priced over one million. There were 1,677 condo sales, all in the one million dollar price range.

Many of these luxury condominiums are located in areas of wealth and many have top-notch views. Amenities in such luxury condos may include quality furnishings, such as appliances, granite counter tops, and window treatments. Many luxury condo buyers like the fact that the properties are secure and feel their items of wealth are protected in this type of environment and they don