Affording today’s housing market isn’t always so simple, which is why HOA fees aren’t easy to digest for some buyers. Today, I thought it would be cool to graph a few decades of association fees. I’ve never actually done this before, and while I know it’s total chaos, I think it’s also interesting. What are you seeing with buyers and HOA fees right now? Big deal or no biggie?
UPCOMING SPEAKING GIGS:
6/5/24 Marketing Mastermind (register here)
6/6/24 Golden 1 Credit Union
6/11/24 Elk Grove Regional MLS Meeting 8:30am
6/13/24 Sacramento Realtist Association (details TBA here)
6/21/24 Exporting data from MLS (details TBA)
7/9/24 Future Homes Q&A (private I think)
7/11/24 She Invests – REI Networking Group 6pm (register here)
9/17/24 Downtown Regional MLS Meeting Q&A 9am
9/20/24 How to Think Like an Appraiser class (details TBA)
10/18/24 Prime Real Estate (private)
10/29/24 Orangevale MLS Meeting
WHY IS CONDO VOLUME DOWN IN 2024?
Single family detached volume is up 5% in the region, but condo volume is down 5% this year so far. What’s going on? It could be a few things. Insurance woes with condos. Attached living with a tiny yard isn’t as appealing at current prices. Or maybe the HOA fee is less desirable in the midst of affordability challenges.
A PODCAST I DID & I’M NOT 20 YEARS OLD
If you need some background noise, here’s a podcast I did a few days ago with Marguerite Crespillo. This was a fun chat. And yes, there’s a serious age filter on the thumbnail that makes me look 20. Haha.
THIRTY-SIX THOUSAND UNITS
This graph is a HOT MESS, but this is what it looks like to have 36,000+ dots on one visual. Haha. These dots represent condo HOA fees in Sacramento County since 1998 based on MLS sales. The rise is obvious, but I created some neighborhood graphs to help see the trend more clearly.
THE FINE PRINT
These graphs show sales, so we’re limited to seeing what has sold instead of having information directly from an association. In short, we have enough information to see the big picture, but there are likely some MLS input errors too. I did weed out any fees that said zero.
WOODSIDE SIERRA
This condo development is currently selling in the lower $200,000s to the mid-$300,000s, but check out those HOA fees at $400+ per month lately. While condos are theoretically more affordable, the HOA fee can sometimes really inflate the monthly mortgage payment.
MOON CIRCLE IN FOLSOM
A look at this smaller condo development in Folsom on Moon Circle. It doesn’t look like a substantial increase when considering sixteen years, but the bulk of the increase is within the past eight years.
EMERGENCE OF LUXURY CONDOS
It’s rare to see condo fees above $600 per month in Sacramento, but here’s a look at some luxury condos that command a much different fee. I suspect the bulk of these are the Kimpton Sawyer Hotel in Downtown Sacramento (next to the arena). This is interesting as it shows sub-markets can emerge and buck the trend. I will say from a development standpoint, it takes guts to build something that is different in anticipation there is a market for the product.
GOLD RIVER
I included both condos and all detached units in Gold River, so this is a bit chaotic. It looks like all tiers have sort of changed at a similar level over the past ten years in particular. It’s interesting how some neighborhoods have a wide span of fees too.
BLUFF LANE IN FAIR OAKS
These are the condos on the bluffs overlooking the American River in Fair Oaks. HOA fees are hovering between $400 to $450-ish right now.
CASITAS MANZANITA IN CARMICHAEL
This development in Carmichael is often selling in the lower $300s lately, and the HOA fee is $300.
CAMPUS COMMONS
Here’s a look at all units listed as a condo in Campus Commons. There are a wide range of HOA fees in the neighborhood. Overall, it looks like the trend has been similar throughout fee tiers. And look at some of those fees pushing nearly $600.
POCKET GREENHAVEN
Here’s 25 years of condo sales in the Pocket / Greenhaven area.
THIS IS NOT ABOUT HATING HOA COMMUNITIES:
I wanted to clarify that this post is not being written from an anti-HOA perspective. This is more about affordability and the importance of considering some extra fees that buyers could be feeling more right now. That’s all. If you love your HOA, I’m happy for you. And if you despise the idea of an HOA, then enjoy something else if you can.
LET’S KEEP WATCHING:
Let’s keep our real estate antennas up and pay close attention to extras buyers are paying with things like HOA fees, Mello Roos, or insurance in outlying areas (or even in the suburbs).
Thanks for being here. I hope this was helpful.
Questions: What are you hearing from buyers about HOA fees right now? What do they like or not like? Any stories to share? What did I miss?
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