The Year of the Condo

If you were lucky enough to buy a condo last year - either as an investment or a place to call home - you just enjoyed a 23 percent increase in property value on your investment. Most everyone knows about today's low interest rates, but man... when our market mixes in low inventory and plenty of buyers almost begging to purchase, you ARE battling multiple offers.

It's fantastic for people with a condo to sell, but buyers are faced with a very fierce competition. Losing out on a few (or 10) offers before you get an offer accepted is the norm in this environment, so you must be patient.

A life-long resident of the Conejo Valley, I witnessed the mountainous prices before the big crash and remember many friends who didn't purchase who wished they would have. In waiting for what they believed to be the perfect home, they soon found themselves suddenly priced out of the market.

This past winter was the start of the new real estate cycle. I don't have a crystal ball, but speaking from experience - I advise you to buy something you can afford that is acceptable for the time being to get your foot in the door while you can. Let your property appreciate, sell a couple of years later and take the equity to roll into your next purchase. Your other option is to wait for your perfect home - while time and prices pass you by - or throw your money away on rent. Know this: A condo that was purchased at $250,000 last year is now offered for sale at $315,000 WITH multiple offers... something to think about.

If you are a first time buyer, or thinking about investing - do it now. I only see rising prices, and who knows how long the rates will stay THIS low.

Gail Dworkin, REALTOR - gail.dworkin@century21.com