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Demand for Condos Grows Strong

More people are looking to condos as their first choice when they purchase a home. While there are still more single-family home sales in Massachusetts, 5,795 single-family homes sold in June compared to 2,429 condos, there is definitely an increased demand for condos across the state.

Single-family homes sales have increased 4 out of the first 6 months this year, while condo sales have increased every month compared to last year.

Demand for condos is evident when we look at recent sales numbers: year to date condo sales reached 9,590 in Massachusetts, up 8% compared to the same period last year when there were 8,841 condos sold.

Condo prices also continue to grow. The average price for a condo in Massachusetts is now $301,206, up 6% compared to last year.

Why the increase in demand?

Before the economic downturn, home buyers bought single-family homes in the suburbs mostly because of the large yards and having much more living space. But when prices for homes in some suburbs began to fall, many people moved back to the city for the convenience and being closer to work.

Homeowners nowadays want less of a commute and condo living also allows a more convenient lifestyle. Condo fees go towards scheduled maintenance such as repairs, landscaping, and snow removal, making it appealing to people who want more free to time to enjoy everything the city has to offer.

There are also more types of homeowners looking for the lifestyle condo living offers. Young professionals move into the Greater Boston area because the availability of high tech jobs; baby boomers want to downsize and no longer need the space of a larger suburban home. Even new families with children are looking to live in a condo because of proximity to work, shops, and cultural attractions.

Another reason condos are growing in popularity is because condos built now are larger and have so many more amenities than condos built 25 years ago.  Luxury condos have features such as loft-style floor plans, modern kitchens, and 24 hour concierge service. A lot of townhouses have a single-family feel yet are low maintenance. Some condos have as much square footage as single-family homes and some even have garages.

Investors are taking advantage of the hot condo market and putting their money into condo developments rather than building single-family homes, especially in the Greater Boston area.