Dean Jones, brokerage Realogics Sotheby’s president and CEO, expects some condo owners who bought near the market’s peak, then watched the value of their units plummet, will put them up for sale as prices recover. That “shadow inventory” should meet some of the future demand, he says.
Still more probably will be met by developers who convert their apartment buildings to condos, Jones adds.
But he doubts there will be too much of that. Apartments in many new buildings are too small and lack the quality finishes to easily market as condos, Jones says. What’s more, some newer projects built as condos — but converted to rentals when the market turned — have since been acquired by investment firms that intend to hold them as apartments long term.