I don’t do condos and normally I don’t report on them either. But I saw this piece on CnnMoney.com and couldn’t resist.
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Seriously. It talks about condos for sale in Florida and Vegas that are now going for $25 to $30,000. That’s for a 1 bedroom condo. During the boom, condos were quickly and massively overdeveloped in these areas, thus the precipitous fall in prices.
Here in the Foothills there was similar rush to develop condos in, I think it was, 2004 – 05. But instead of building them, because there was no land to build on, condo developers just converted rental apartments to condos – with the added benefit of, presto, instant condos.
But they all did it at the same time. And suddenly new condos were sprouting up at Veranda, at Pinnacle Canyon and at other newly minted condo communities within three to six months of each other. So, overnight, we went from a meager supply to a huge glut.
In the period of April thru July 2006, Tucson Foothills condos sold for an average of $223,440/$203,450 median. With the lowest price going for $126,900.
In the same period this year they went for an average of
$145,000/$134,000 median. A 35% drop in average and down 34% for the median. With the bottom of the barrel selling for $55k, $61K & $83k. And with 25% of this years sales as foreclosures or short sales.
Currently there are 155 condos for sale in the Foothills, average list price $157,684/$159,000 median. With the lowest price at $75,000
for a 1 bed/1 bath/701 sf unit at Veranda.