Roadmap with Irina - May 2025

You’ve probably heard that the current condo market is very tough, and this time I would like to talk about the main factors making it challenging for both sellers and buyers:

1. Increased Inventory: There are about 50% more condos on the market now compared to the same time last year. This means sellers are competing against each other, and buyers have more options and no urgency to make a decision.
2. Longer Time to Sell: With more condos available, it takes longer to sell. The average time on market is currently 55 days, and for some properties, it can take even longer. This extended timeline puts pressure on sellers and gives buyers more flexibility.
3. Higher Interest Rates: Condo mortgage rates currently range from 6.75% to 7.5%, depending on factors like down payment amount and the financial health of the HOA. With higher rates, fewer buyers can qualify for financing or they choose to rent instead, because monthly payments are more affordable. By the way, rental market is booming now for the very same reason: it is cheaper to rent than to buy on the short run.
4. Stricter Lending Requirements: Lenders apply more regulations to condos than single-family homes. They review HOA documents, and if something doesn’t meet their guidelines, the loan may be denied, and buyers won’t be able to buy this condo. In December and November of last year, I had two very challenging condo sales in Mountain View and San Jose, where lenders dropped the ball in the middle of transactions and we had to urgently look for other lenders who could pick it up and move forward. We got lucky both times, and closed transactions with just a couple of days of delay, but it was nerve-wrecking for everyone.  
5. Rising HOA Dues: As you may know, home insurance costs in California have gone up significantly over the past year. For many HOAs, the cost of insurance increased  2x, 3x, or even 4x, which has led to higher monthly dues. High monthly HOA fees are a red flag for many buyers, and can rule out many options for them897.

All of these factors impact affordability. As a result, the pool of condo buyers has shrunk, inventory has grown, and prices are slowly trending downward. It’s not a dramatic drop—about 5–10% compared to last year—and it varies by location and condition of the condo.
If someone bought a condo in early 2022, when rates were around 3–4%, they likely paid a premium price, but their monthly payments are lower. If you don’t need to sell now, you’d better wait to a better time to minimize loses. If you need to sell now, let’s talk about your unique situation and see what is the best option for you.

If you are thinking about buying or selling, let’s connect, talk about your options, run some numbers, and see if this is the right time for you. Call me, I am always here for you.

A couple of weeks ago, we were sitting at the high school graduation for the first time. That’s right, for the first time. Our older son graduated from the same school 6 years ago, but we haven’t been to his graduation. The reason was quite unusual: he was accepted into his dream university at the beginning of his senior year, he passed the high school proficiency exam, and graduated from the school right away. So, we are the parents of a high achiever who skipped school graduation.

I remember my high school graduation very well. I was so proud of myself and super excited: I was the youngest grad in the school graduating with honors and having a clear vision for the next 5 years. My mom was crying, and I didn’t understand why. But now I do.

Monta Vista was a tough school for my daughter: lots of pressure from the teachers and peers, tons of homework that kept her up till 1 am, constant stress.  She was a good student, really trying her best, but at some point, every school day started with the words “I hate school”. It was painful to watch her turn from a happy girl to a grumpy person who didn’t want to share anything. At the beginning of her sophomore year, we were seriously thinking about changing schools and started looking at options. I am so glad that I remembered about the Middle College program for high schoolers! It was the whole process of essays, recommendations, interviews, 120 applicants for 30 spots, waiting for the decision. When she finally received an acceptance letter, it was a burst of emotions, joy, relief from enormous pressure, and a sense of finally getting control of her future. Middle College was the best environment for my daughter: she found great friends, became the best student, tried many college classes, had time for gym, work, hanging out with friends, and the most important part – our relationship with her became closer and more trusting.  Parent support is SO important!

And now sitting in the parent crowd during the ceremony, I was very emotional like my mom was and very proud of my daughter for overcoming all the obstacles, regaining herself, and becoming a wonderful young lady with a bright future.  

Congratulations to all new grads! I wish you to accomplish everything you want in life, no matter how hard it is. You can do it!

Congratulations to the parents of the new grads! You went through an enormously hard mission of raising well-rounded people, and now it is time to let them go. I always said that it is easy to be a parent, but it is very hard to be a good parent. Thank you all for being good parents! Find time to celebrate your own achievements; you deserve it more than anyone else.

Always your,
Irina