Eileen and I get asked this question all the time. Do condos appreciate the same way as single family homes? Here are our answers and the data-
- Are condos a good investment in Fort Collins?
- YES. Condos do appreciate like homes in this market. The median condo price is up 10.9% compared to this time last year, while single family homes are up 8.7%.
- Why are condo prices going up so fast?
- As the real estate market and interest rates continue to rise more shoppers and first time buyers will purchase condos as they are more affordable than single family homes.
- What is the you plus 2 rental rule?
- Fort Collins city regulation that no more than 3 unrelated persons can rent a home. As a landlord you are responsible to enforce this. A 3 bedroom condo could be the safest investment for out of state investors.
- Are we in a bubble?
- We are optimistic that the market will continue to rise for several years here in Northern Colorado. Although market swings are inevitable, Fort Collins over the past half century has seen an average of around 5% appreciation per year.
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Good info, particularly since I am a condo owner! In addition to first-time buyers, condos also appeal to those looking to downsize, have less upkeep and want to “lock and leave.” There’s not a lot of new condo construction being done, so it seems Fort Collins’ short condo supply will make existing ones more in demand and support rising values.