Reversion

According to this Wall Street Journal article, many condos that were rented out during the recent housing crash are now for sale:

Many condominium developers who rode out the real-estate downturn by renting out their units are reverting to for-sale housing, in another sign of the market’s continued recovery over the past year…

Last year, some 2,080 apartments were converted to condos from rentals. That is a pittance from the 152,206 conversions that took place in 2005 when the real-estate bubble was inflating, but it was the highest total since 2008, according to property researcher Reis Inc., which tracks only those buildings with 40 or more units.

The numbers are muted because the apartment market remains strong and because the bulk of today’s conversions are different from the boom years and should probably be called “reversions.” That is, the developers had always planned to sell the units as condominiums but were unable to find takers during the real-estate bust…

Reversions are being driven by a supply shortage in the single-family-home market, which has sent prices upward. There were 2.07 million existing homes for sale at the end of August, up 5.1% from January but still down about 6% from a year ago, according data from the National Association of Realtors and Trulia, a real-estate listings site. The data include both condos and single-family homes.

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