Yesterday I attended the annual 2016 Condominium and Townhome Development Summit where we discussed the state of the industry, trends, etc. I follow this sector of the real estate sector very closely and often speak at seminars regarding this topic. Although this sector of the real estate market was hit the hardest during the downturn in the economy and the Great Recession; for-sale multifamily products such as townhomes and condominiums have been in high demand. All of the lender-mediated homes have been absorbed and pricing has been bouncing back strongly; due in part to a lack of supply. As developers have focused on the apartment boom; condos have been on the back burner and very little supply has been constructed since the recession. As a result we have very strong price appreciation today and very little product. Therefore many listings never hit the market as there is a buyer before the home even hits the market. The Mullins Group believes this market will stay strong because of strong demand from the baby boomers and Millenials will begin buying soon.
