Seattle area condominiums no longer a laughing matter

The local joke made the rounds in housing circles not long ago:

What are three things impossible to get rid of in Seattle? Death, taxes and a condo north of the ship canal.

According to a recent survey by Seattle-based Zillow, condominiums are appreciating faster than single-family homes in Seattle and markets across the U.S., especially where job markets are thriving or urban renewal is underway.

Local condos appreciated 10.5 percent from September 2014 to September 2015 while single family homes were up 8 percent, Zillow reported. Nationally, condominiums appreciated at a rate of 5.1 percent, compared to the 3.7 percent appreciation among single-family homes.

“The housing bust hit condo values hard, and over the past few years, buying a condo wasn’t always considered a good investment compared to a single family home,” said Svenja Gudell, Zillow’s chief economist. “But that’s changing, and condos increasingly represent a strong-performing, often affordable choice, particularly for first-time buyers interested both in homeownership and in keeping a lower-maintenance, city lifestyle.

“However, as younger buyers compete for homes in urban neighborhoods, it’s important to consider some of the additional costs of condo life, especially homeowner association fees, when weighing options.”

Condo values crashed hard during the most recent housing bust. From the pre-recession peak to the lowest value, the median U.S. single-family home lost 20 percent of its value while the typical condo lost 33.2 percent.

The housing market has since bounced back, and condos have finally caught up to other homes. According to Zillow’s data, they are appreciating faster than single-family homes in nearly two-thirds of the top 35 most populated housing markets.