If you are thinking about about investing in Huntington Beach condos in 2017, then you should review the 2016 market statistics. Are prices on the rise, going down or stable? Are buyers paying full price, above the listing price or below?
Answers to those questions will help you understand the real estate market in Huntington Beach and other cities, would you agree?
The Huntington Beach Condo Deal
Almost every home buyer I talk to wants a deal. They want to pay less than a seller is asking for and most of them want a move-in condition property. Homeowners want to get the highest price possible for their home or condo.
The dilemma begins.
Past Pricing Can Equal Future Huntington Beach Condo Market Values
A client told me she saw the home for sale on Zillow priced at $475,000 and the zestimate says it is worth $600,000. She called me and said “Jay, want to see that condo now and write an offer.” I said great. But what do you like about the condo. “Well, Zillow says it is priced below the market and it’s a deal.”
I carefully researching recent sales and determined that the home was really worth $425,000. I sent her my report and she did not write an offer on the condo.
Zillow is an interesting online marketing company. It’s focus is on selling advertising space and presenting real estate listings. I take their estimates with a grain of salt. I have seen the estimate by off by as much as 30% over the years.
How are Condo Values Determined?
I was taught by my mom, who was a Realtor® for 35 years, over 24 years ago. This was way before computers. She shared with me that the market value of a condo or home was determined by square footage and location.
If a condo has 1,250 square feet, then an appraiser or a Realtor® will take a square footage range of 1,150 to 1,350. If it is a condo, I should look for similar condominiums in the same community. Find the 3 most recent sales and evaluate their conditions.
If there are no condos in the community that sold, then I look for similar properties within 1/2 mile of the community.
While using a computer now a days is easier, I still follow the wisdom my mom gave me 24 years ago. If the condo is only worth $425,000, that is what it is worth.
A future appraiser is going to go a little more in-depth then my numbers and present their findings to a bank so they can loan against the property for a prospective buyer.
Let’s get back to our topic today about learning from the market trends of Huntington Beach condos…
Huntington Beach Condos vs Townhomes Pricing Differences
The average selling price of Huntington Beach condos in 2016 was $473,430 which was up 5.7% from 2015. Townhomes are selling for $588,725 which is down 3.7% from 2015. Huntington Beach condos are selling for 98.7% of the original listed price. Townhomes are selling for 98.9% of the listed price.