By Nef Cortez
Diamond Bar property values have increased tremendously over the last 8 years, as they have throughout California. Rents have also increased more than 30% for Single Family Residential (SFR) detached homes over that same period of time. This week we will look at the rental rates for Townhomes and Condominiums in Diamond Bar and compare them to the rental rates for SFRs.
The first quarter (3 month period) of 2010 saw the Diamond Bar Townhome and Condominium Median Sales Price at $265,000.00. After dropping a little further in 2011, the Median Sales Price for that segment of the market in Diamond Bar reached $382,000.00 in the First Quarter of 2018. That represents an strong increase of 44.2% in the 8 years, averaging approximately 5.5% annually. The number of sales recorded in this segment of the market in the first quarter of 2010 posted a fairly strong total of 54. The number of recorded Townhome and Condominium sales in Diamond Bar for the first Quarter of 2018 dropped to 33, a steep drop of 39%. For those in the real estate industry, that represents a steep drop in numbers of transactions, almost mirroring the drop in the SFR market.
The number of leases transacted (per the California Regional Multiple Listing service-CRMLS) in the first quarter of 2010 was 76. That number increased by 36.8% to 104 in the first quarter of 2018. It seems that the lower number of recorded sales translated into a higher number of reported lease transactions. This would indicate that an increased number of property owners are choosing to rent out their properties instead of selling them. And why not, with both rental rates and property values increasing, it is a win-win for property owners.
The rental rates for Townhomes and Condominiums in Diamond Bar increased as well. The median lease price for a Townhome/Condominium in Diamond Bar was $1,800.00 in the first quarter of 2010. That number now has reached $2,500.00, representing an increase of 38.9% in the 8 year period. The median lease price for a Single Family Residence in Diamond Bar for the first quarter of 2018 reached $2,860.00, only 10% more than the median lease value for the Townhome/Condominium market.
I wish I had bought more real estate back when…LOL! Seriously!
This article was written by Nef Cortez who is a licensed Real Estate Broker, Ca BRE # 00560181, licensed since 1976. He can be reached for more information via e-mail at email@example.com, or website www.nefcortez.com. Please feel free to email any questions regarding real estate.
Broker DRE # 00560181
RE/MAX Universal Realty
1411 S. Diamond Bar Blvd.,
Diamond Bar, Ca. 91765