FAQ: I think condo/townhouses appreciate a lot less than single family homes. Is that true?
That's a question I hear from time to time, most recently two days ago. While it might be true in other parts of the county, in the towns of Belmont and San Carlos California, mid-way along the Peninsula between San Francisco and San Jose, the gap is narrowing.
Take a look at these two charts, taken from our Multiple Listing Service:
The first chart shows appreciation of 3 bedroom condos/townhouses in the two towns 2014 to date. Appreciation: 35.8% in 5 years. The second chart, same period, but for 3-bedroom single family homes shows appreciation of 36.4%. That is just over 1/2 percent difference.
Would this analysis have the same results in others towns in Silicon Valley? In every neighborhood in San Francisco? What about 2-bedroom, or 4-bedroom homes (4-bedroom condos are scarce.)
This type of information is something I provide clients and people with whom I'm working when they are trying to decide what is best for them. I analyze towns and neighborhoods within towns; analyze types of properties; analyze price ranges. The more information they have, the better decisions they can make.
Remember, real estate is local, and that means micro-local not only in area, but types of properties and price ranges.