Because I’ve owned two condominiums in Marin, I have a great affinity for the condos and townhouses in my home county. My first purchase in 2000 was in San Rafael, at Sessions Rise. We sold it in 2002, then bought another condo in 2004 at the Gateway in Novato which we then sold in 2005. Our timing was very good as we were able to make profits both times. I might feel a little differently about condos if my personal experiences weren’t so favorable.
When the market hit rock bottom from the Great Recession, I helped one client purchase a string of affordable condos in Sonoma County. All were solid investments, condos we nabbed for about $60,000 that are now worth three times that! The condos are currently pulling in great rental income and are central to a lucrative financial strategy that set up my client’s retirement. Perfect for someone retired, condos are a lot easier to manage than single family homes because when something goes wrong you can often just call the Home Owners Association.
I currently have two condos that are listed and in-contract at Marin Roundtree in San Rafael. I’ve closed escrow on two condo listings in Novato this year, at Village Circle and Somerset. When I got into the business, I heard a lot of agents talk about not liking condos because of the extra paperwork and having to work with HOAs and management companies. I thought to myself, that’s really a poor attitude. We already handle a ton of paperwork, so what’s a little more in a transaction? I’ve also met some really great people selling condos, so I can’t see myself turning down condo business. Condo sales help put food on my table and keep my mortgage paid, so I’m always grateful when I can help a client purchase or sell a condo.
One thing to know before owning a condo: I believe it’s important for condo buyers to be realistic about their expectations. Once you own a condo, it can be vital to keep your eyes on the market, especially if you are going to own for a short period of time. I sold my first condo because I thought the market was going to go down in 2002. I wasn’t in the business yet and wasn’t cognizant of the wave of subprime loans that was beginning to build. Buyers didn’t need good credit, and they purchased homes with little or no money down because they qualified by virtue of having pulses. I sold at the top of the 2 bedroom, 1 bathroom Novato condo market in 2005, and by that time I had become a full time Realtor. The broader market really didn’t start getting hit until the end of 2007. The axiom is that condo prices are always the first to go down and the last to recover, and that was definitely the case during our last housing cycle.
Prices on many condos in San Rafael and Novato have kind of plateaued for a while now. Some association prices have even come down slightly. Others have gone up, so it’s a mixed bag. Low supply and low interest rates continue to stabilize the market. If this keeps up, we have the potential for higher price levels in some HOAs. That’s something every condo owner wants to see and every buyer dreads right now.