Attention, Home Buyers: Facts to Consider About the Condo Market
According to a recent study by the Mortgage Bankers Association, more than two thirds of condominums are occupied by owners, not renters.
These residences are becoming more and more popular for home mortgage holders around the country. With that in mind, here are a handful of reasons why that’s the case - and why perhaps you should consider a condo purchase:
- In 2006, the number of married households fell below the 50 percent level to 48 percent, according to the U.S. Census, meaning more singles and non-traditional households are the majority of housing consumers.
- Single women home buyers make up nearly a quarter of the market, according to the National Association of Realtors, accounting for nearly 30 percent of total homeowner growth between 1994 and 2002.
- Single females make up 42 percent of condo buyers. Single males make up 20 percent, while married couples constitute 30 percent of those who use home loans on condos.
- The Tax Relief Act of 1997 has introduced unprecedented liquidity and mobility to the housing market, making it possible to own a home, occupy it for a minimum of two years, and move out in two years without taking a tax hit.
- NAR’s Profile of Home Buyers and Sellers 2006 says that condo buyers (median age: 43) are older than single-family home buyers (median age 41.) because this sector attracts the “bookens of the housing market,” from first-time buyers to baby boomers.
- Mortgage lenders have relaxed lending standards to allow younger and single home buyers to buy homes by removing obstacles (such as differing credit standards for divorced women,) and creating a wide variety of adjustable-rate mortgages or interest-only hybrids that don’t penalize borrowers for short-term ownership.
- Condominium buildings offer products not easily found in single-family homes such as one-bedroom, one-bath configurations which appeal to singles and first-time home buyers.
- One out of ten homeowners owns a second home, often a condominium in the city or a favorite vacation spot.