WITH THE MARKET IN FLUX, CONDOS COULD BE A BARGAIN PLAY

After the intensity of the previous two years, the housing market showed signs of slowing in 2022 as a series of interest rate hikes gave buyers pause. Even with homes spending more time on the market, inventory remains scarce, and prices almost everywhere continue to climb, pushing some home hunters to expand their search into a broader radius.

The good news is condo prices have been showing signs of moderation. Though not as popular as single-family or multifamily homes, condos are a great way to capitalize on today’s market. Condominiums may award savvy investors with plenty of upside.

Condos can be a great investment under the right circumstances. They are a great option for newer investors that prefer a hands-off approach as they typically require less maintenance. As with any real estate investment you'll want to make sure you perform proper due diligence to ensure you purchase a condo that's been well maintained, and which can generate a decent return. 

There’s no denying that condos are more abundant and affordable than single-property homes. Condo buildings consist of dozens (if not hundreds) of units; developers can create more housing in less time when the homes are in such close proximity to each other. Condos are also more affordable, making them a bit more accessible. In some instances, it may also be easier to find tenants to rent out a condo. With a big home, you’ll want to target a family or perhaps multiple college-aged students. But you can rent a condo out to one individual, a couple, roommates, or a small family.  

Condos are still a good investment in 2023. But, opportunists must take the time to crunch the numbers and ask themselves how much they really expect to earn each year. For some, the ultimate goal is to eventually resell when the unit has increased in value. If that’s the case, then purchasing a condo is a relatively safe bet. But if you’re focused on generating more revenue right away, you may want to explore other options.