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Market Bites: South County Condo Sales as of May 2020

Updated: Jun 13, 2020

South county areas, Morgan Hill, San Martin and Gilroy's number of condo sales were down this year as of May 2020, approximately 1/3 from last year, but received 98% of it's list price, which means there were no drastic price reductions.


The average days on market was less than last years, so it's still a good market.


Average price per square foot is $404 compared to $439 last year.


With interest rates jaw dropping low, it truly is a time to buy and lock in your rate.


Condo's have HOA - Homeowner Association Fees which normally cover insurance, maintenance of common areas and everything outside of the 4 walls of a condo. Typically, the more amenities, like a bbq area, pool, clubhouse, fitness area, etc; the higher the monthly dues. The dues are not a write off unless you covert to a rental, however consult with your CPA to find out the impact on your income and end of year tax filings.


The docs will also describe how many parking units, pets allowed, noise abatement policies, notices of maintenance and other rules surrounding the maintenance of the entire property.


With new developments, normally the builder controls the HOA until over 50% occupancy of homeowners, then the control passes onto the homeowners. If you purchase a condo, be sure to at least attend the monthy (or whatever your frequency is), as a way to stay informed with the management, costs and eventually resale of properties which directly impacts your sales price.


Condos also have a Board of Directors or some type of overall management that oversees the budget. The "HOA Docs" are always included as a sellers' disclosure packet about the property.


When reading through the docs, be sure to ask whether there are any pending lawsuits. Consult with your attorney regarding any questions or concerns about the condo docs.


Condos are normally the first step to take in homeownership because of their relatively lower costs than single family homes. Be sure to know how much your principal, interest, taxes (property) and insurance payments are, plus monthly HOA dues to factor in your monthly budget. Ideally you'll want to have 3 months of savings for any emergencies or unexpected repairs or replacements. Keep an eye out for 0% financing on credit cards if you have to replace an expensive household item.


Just as we have wardrobes for 4 seasons, your property will have more or less demands, depending on the season - hot summers means higher electricity bills for air conditioners and fans. If you're buying an older unit, make sure they have dual paned windows for energy efficiency and there are curtains that keep heat in or out, depending on your needs. Change out all light fixtures to Led lighting. Although they are expensive to purchase up front, they save energy bills in the long run.


Pro's and Con's of Upper and Ground Floors - upper, no one is walking above you so it's normally quieter, but could be warmer/hotter depending on the insulation of the building and within the individual units. You'll also have to carry groceries and initial furniture moving in unless the building has elevators and garbage chutes. Some condos will have individual laundry rooms in the units, some on each floor or one main common area - coin operated, average around $2.00/load for wash and $2.00/dryer.


The number of parking stalls, plus parking for guests are good things to know. Also the total number of pets, usually they put a weight maximum and sometimes a limit on breeds, so be sure to read the HOA docs or ask the property manager.







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