According to the National Association of Realtors, sales of single family homes increased about 0.5% month to month, but sales of condos jumped over 7%. Compare that with a year ago rates single family sales were down nearly 7%, while condo sales were flat.
According to Lawrence Yun, chief economist for the Realtors. “The baby boomers who are looking to trade down, they are looking for condominiums. Many of the younger people, if they can qualify to purchase, they are looking into the condominium style of living, compared to single family homes with back yards.”
Sales of existing homes improved only slightly in April, and there is a growing divergence between the types of homes being purchased by American today.
During the last housing boom, the builders and developers went outside of the suburbs into the so called “exurbs”, seeking cheaper land so they could build bigger homes.
Rental demand is continuing to surge despite rising rents. Apartment occupancy increased to 94.8% in April. Developers are well aware of the housing recovery and continue to believe that rental demand for condominiums will be strong for the foreseeable future.
[idx-listings city=”Redondo Beach” statuses=”1″ propertytypes=”511″ orderby=”Price” orderdir=”DESC” count=”25″ showlargerphotos=”true”]