Pretty much everything I said about how single family homes fared in 2009 also applies to the condo/TIC market. (TIC’s, aka Tenancy In Commons are similar to condos. For more information on TICs, see my three-part series starting here.)
Condo/TICs hit their all-time highs about a year later than homes did — in July 2008. But they’ve fallen from their highs almost exactly as much as homes have. Condos/TICs were down 17%, just one percent better than single family homes.
Last post, we determined that the current difference between the average (annual) price of a condo and that of a TIC is $86,000, down from a high of $124,364 in 2006. (That’s a 30%+ drop, by the way.) Here’s the chart again (sorry for the funky transparency on the sales volume bars).
That’s useful if you’re looking at an average-priced TIC and you’re curious about how much of a premium you’d have to pay for an average-priced condo. But how about reducing that to a per square foot premium? ...
Inconvenient and Ugly
A tic is an involuntary and habitual muscle spasm, frequently in the face. If you live in San Francisco, a TIC is also what many people end up with when they buy a flat in one of San Francisco’s classic 2-4 unit buildings. Like the medical condition, TICs are inconvenient at best and can be downright ugly at worst.
TIC stands for “Tenancy-In-Common,” a form of legal title by which multiple owners take title to a single property. In San Francisco, this form of taking title has come to be used as an end-run around the City’s restrictions against converting multi-tenant buildings into condominiums. ...