Recently, I blogged about the fact that condominiums seemed to be holding up better than single family homes in terms of their decline from their all-time highs.
At the same time, I noted that there was only about $100,000 difference in median value between condos and homes. That seemed like a small delta and I was interested to see whether it was, historically speaking. Turns out that it is.
Since, until recently (ahem!), home prices along with everything else have tended to go up, I decided not to look simply at the difference in price between condos and homes. Instead, I converted the price difference to a percentage of the median value of condos sales for the given period. This represents the “premium” for owning a home rather than a condo. Here’s the result. ...