Condominiums are holding their own — price wise and in sales volume — in most markets throughout the country. They are becoming the residence-of-choice for increasing numbers of buyers.

Condo values have been notably resilient, while other housing types have seen considerable drops in prices nationwide, according to a report from the National Association of Realtors (NAR). In some major markets, condo values actually increased over the past year. Other markets report modest value declines.

The evolution of condos has been interesting. When I started writing on real estate in the 1960s, the term “condominium” was strange and confusing to many consumers; I had to define it before reporting on the subject.

Condos quickly became a popular option for buyers, especially for young first-time home buyers and retirees. Today, they are more popular than ever, appealing to all segments of home buyers.

Choices now range from very small, inexpensive mini-condos to large, luxurious units often located in high-rise structures in metro areas. To demonstrate the progressive demand for condos, about 580,000 condo and cooperative units were sold nationally in May (per NAR stats). In June, sales increased to 590,000, and sales climbed to 610,000 in July.

Convenience, economy and security are probably the key motivators for condo buyers. Owners aren't bothered with landscape or other outdoor maintenance; it's all handled by professionals. When going on a trip, owners just lock the door and away they go, worry free.

Currently, condos are not bargains. They can be quite costly, but their prices are attractive when compared to single-family detached homes. It often provides an opportunity for a buyer to enjoy the benefits of homeownership when other forms of housing are not affordable.

Security is a major concern to most homeowners. Condo owners often live in gated communities with keyed entries, and the cluster of units with windows overlooking each other tends to discourage would-be burglars.

Other appealing amenities at most condo developments are the community swimming pools, clubhouses and fitness centers. These are luxuries that would be far too expensive to include with most single-family homes.

Downside considerations to condo living might include hefty association fees as well as elements in the rules and bylaws that might seem overly restrictive. And if you don't enjoy living close to neighbors, condo living is not for you.

Q: Is the real estate industry in a recession?

A: The chief economist for the National Association of Realtors actually used the “R” word (recession) in a recent report. Yes, we have entered a recession, he said, but the good news is that home sales will be rising despite challenging economic times.

A NAR report forecasts a tepid recovery in our economic woes during the second half of next year. The unemployment rate will peak at about 6.7 percent by mid-2009 before starting a steady decline. This is the most important development in making homes affordable to buyers, thus driving home sales.

Home prices have fallen significantly in many parts of the country in recent months, while mortgage interest rates remain at lows levels despite recent increases — this has enhanced the affordability of homes substantially. Many prospective buyers are opting to take action now before mortgage rates climb even higher.

During a previous recession, economy problems resulted in the loss of nearly 2 million net jobs from 2001 to 2003. Existing home sales increased from 5.2 million to 6.2 million while many jobs were being cut. New home sales rose from 900,000 to 1.1 million. During that period, mortgage rates were falling and housing affordability was rising.

A positive indication that buyers responded to incentives was the solid jump in pending home sales in August, the highest level in more than a year. The biggest increases were in areas with rising affordability from sharp reductions in home prices, particularly in California, Nevada and Florida.

The expansion will broaden to other markets where home prices are experiencing dramatic downturns, according to the NAR report. Existing home sales will probably reach an annual rate of 5.2 million by the end of this year and increase to 5.4 million in 2009.

Q: Are special programs available for veterans who want to buy a home or refinance a mortgage?

A: Veterans who are having problems making their monthly payments on the subprime mortgage loan, which they use to finance the purchase of a home, can now receive a special break from the government. They may refinance those troublesome loans with a safe and affordable loan when they take advantage of the Veterans' Benefits Improvement Act of 2008, recently signed by the president.

The act contains housing provisions for veterans who are already homeowners and those who aspire to homeownership. The law extends VA loan limit increases through 2011, helping veterans living in high-cost areas.

With the assistance of this legislation, the VA can now offer adjustable-rate mortgages to veterans, making homeownership more attainable for military families and personnel who often have to move more often than most homeowners.

To find out more about Jim Woodard and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.

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