The housing market is quite volatile currently. However, analyst firm JP Morgan believes there will still be niche opportunities in 2023 in the affordable housing market, as the demand in that segment is more than the supply. 

Rents have gone up due to high inflation. As of October 2022, rents have increased by 7.5% on a year-on-year basis. In such a scenario, it is natural to feel anxious if you are a stakeholder in the real estate market in the United States today.

If you have purchased a condo or planning to purchase one, you may be wondering how its prices will fluctuate in the future and what you can do to increase its market value. Whether your home value will appreciate or depreciate over time must be the burning question in your mind. 

To get some of these answers, here are some things you can do to make sure your investment is secure:

1. Perform a Neighborhood Assessment

Focus on finding someplace where there's potential for growth and stability. Research factors like the crime rate in the area and the traffic situation. Check if there are schools and parks nearby. For young couples who plan to start a family, proximity to daycare facilities, schools, and parks will be a critical factor for shortlisting their first home together.

Check if there are popular restaurants or shops nearby that you might enjoy frequenting. You want to be able to walk to these places. It also creates great street life that can help raise property values over time.

1. Consult an Experienced Property Agent

It is important you know the true value of your condo before you start scouting for buyers. If you consult a reliable property agent with experience in condo sales, you can understand the true valuation of your property.

We suggest you schedule an initial call with a reliable broker’s team. They will either visit your property in person to check its condition or survey your condo via video call. Post this step, they will take into account the location of your condo and generate a preliminary estimate. This estimate will give you an idea of your property’s market value. 

1. Check the Condo Complex’s Amenities and By-laws

Amenities are the things that make a condo complex unique. They can include pools, gyms, tennis courts, and other recreational facilities. However, the behavior of the Home Owner’s Association and management will also determine the maintenance situation of the amenities and periodic modification of the by-laws. 

Check if the management is financially stable and ensures quick resolution of residents’ grievances. You should also research the by-laws of your condo complex, which are the rules that all residents must follow. These may include things like pets being allowed or not allowed, noise levels, and smoking rules. 

The pet clause is very important as millennials today feel pets are family. In a recent survey by Consumer Affairs Research Team, 57% of millennials felt they loved their pets more than their siblings, and 30% felt they loved their pets more than their romantic partners. If your condo’s Home Owner’s Association bans pets, it might be difficult to pitch your property to potential millennial customers. 

1. Opt For Modern Units

If a building is newer, it will have all the latest amenities and features. Newer buildings tend to have updated units with new fixtures and appliances, which means less maintenance for you. 

They also tend to be more energy efficient because they were built after stricter codes were put in place about insulation and HVAC systems. Finally, newer buildings are generally safer places to live, with better security features than older properties.

You can ensure your existing condo is energy efficient by conducting a Do-It-Yourself Home Energy Assessment, as suggested by the Department of Energy. 

It has several steps and includes locating and sealing air leaks as well as checking the ventilation and insulation levels. Energy savings from air leaks, also known as drafts, can range from 10% to 20% annually, so though a basic step, it might give you gains over the long term.

The assessment also involves inspecting heating and cooling equipment, lighting, and electronic appliances. Lighting accounts for 10% of your energy bill on average, and using ENERGY STAR-rated diodes and bulbs will help reduce your bills and move your home up on the clean energy checklist.

1. Develop Your List of Comparables

To get a sense of what a condo is worth, you need to look at what similar condos have sold for in the past. There are two ways to do this.

• MLS System

A Multiple Listing Service or MLS is a database by participating real estate agents to provide data about properties. Usually, these information sources are free and accessible online or through an agent’s office.

• Online Sites 

You can also look at other websites that have sold prices for condominiums in your area. However, some sites may only show median prices rather than actual sale prices.

Have patience when waiting for your investment to pay off, as it may take longer than expected. The number one reason why people give up on real estate investments is because of impatience. They want their money back almost immediately after purchase, but that isn't how investing works, especially when one is purchasing a condo. 

The condo market is a complex one. With the right homework and research, you can find the best place to live and own a valuable and appreciating asset.