Condo Conversions Booming...

Condo conversions booming, from the Arizona Republic, reports that soaring home prices has spawned a wave of condo conversions that has forced tens of thousands of apartment dwellers to search for new homes. Nearly 7,000 apartment units Valleywide were being converted to condos last year, and the trend is continuing, said Brad Johnson, a researcher with CB Richard Ellis. That is forcing renters to buy their converted apartments for roughly $100,000 to $300,000 or find a new place to rent, often at higher prices. Valley home prices spiked upward last year to $240, 500 Valley-wide, $330,000 in Ahwatukee and $600,000 in Scottsdale. That has forced buyers to turn to the more affordable condo market. Investors and developers, recognizing the demand, started buying up apartment complexes and putting up for sale signs/ Last year, sales of converted apartments were brisk at times, with some companies selling out hundreds within hours. But researchers like Johnson of CB Richard Ellis says there is less "froth and enthusiasm" in today's condo conversion market. He predicts that about 20,000 apartments will be converted to condos before the trend slows in a few years.

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