Lock & Leave

An alternative to the traditional but costly, single-family detached home for many homeowners is the condominium. Condos have become very popular over the last few years in our region. Three years ago condo sales made up only 3 percent of all new home sales. Last year they accounted for 23 percent of all new units sold in the Sacramento Region.
The average price for a new two-bedroom, 1,200 to 1,350 square foot condo is running around $300,000. Not exactly cheep but less than the $450,000 for a median priced single family home. Condo buyers closed escrow on 2,695 new units last year and another 2,917 existing units were sold with a median price of $250,000.
Years ago there was a negative response to living in a condominiums. New building technology has eliminated much of the noisy neighbor stigma and price, convenience, and location have pushed condo values up. The typical condo appreciated 38 percent from the fourth quarter of 2001 through 2005 according to John Schleimer, owner of Market Perspectives, a Roseville firm that tracts regional home sales.
Marketing of new condominiums has been traditionally targeted toward first time homebuyers with an emphasis on price. Not anymore. While price is still a factor, a large number of sales are made to empty nesters, older couples and affluent singles. I call them “Lock & Leave” buyers. They are not interested in the maintenance of yards, pools and gardens. They are active, career or recreational focused and retired and want the security of being able to lock up their home and leave to enjoy other activities.
As the baby boomers mature and land for building single-family attached housing becomes scarce watch for condos to become even more popular and thus more expensive.