I inspected a condominium last week in the Hillcrest Park neighborhood in Vallejo, CA. I wanted to share a graph of sales within the subdivision over the past five years. What do you see?
While in the Hillcrest Park neighborhood, I shot the following video as I was considering the vast decline in property value and the impact foreclosure can have on a neighborhood – even beyond real estate values.
Condominium properties have been hit hard in many niches within the Greater Sacramento Region because the price of single family detached homes has become so much more affordable, and an HOA fee plus a mortgage payment often does not make good economic sense for buyers. Why pay more for a condo when you can get a detached home without an HOA fee, right? That’s often the rationale.
By the way, if you are in the market to purchase a condominium, I would strongly suggest you research the health of the HOA before making a purchase. It would be tragic to purchase a condo only to find out the association is bankrupt.