If you're in the market for a new home, chances are the number of bedrooms the home has is a big factor in your search.
Watch Scott Higashi explain how number of bedrooms affects the sales, price of single-family homes and condos.
Not surprisingly, median home prices increase for both single-family homes and condos with each additional bedroom. Additionally, prices are up across all bedroom types for both single-family homes and condos over last year.
Perhaps also not surprising to would-be homeowners, 3-bedroom single-family homes and 2-bedroom condominiums make up the bulk of sales, at 45 percent and 47 percent, respectively.
What many future homeowners may find surprising, however, is that when we compare 3-bedroom homes to 3-bedroom condos, the data shows that Days on Market are the same - at 17 days. Additionally, living area is very close in size, with 3-bedroom homes having just 135 additional square feet when compared to a 3-bedroom condo. But, when we look at the price per square foot, the data shows that a 3-bedroom condo has a median price of $422 per square foot compared to $480 per square foot for a home. Of course, maintenance fees for condos are another factor to consider when home shopping, but for those looking for more space, a 3-bedroom condo is priced about $150,000 less than a 3-bedroom home.
Another interesting data point: The Sold-to-List price ratio is 100 percent for both 2- and 3- bedroom condos and single-family homes, another indicator of strong demand for those types of homes. When we look at studios, 1-bedroom condos and 4- and 5- bedroom homes, the Sold-to-List price ratio decreases slightly, meaning some homes sold for less than the asking price (but remains above 97 percent).
What to consider when choosing among bedroom types
Deciding how many bedrooms you'll need can be a challenge. You'll want to carefully consider not only your and your family's current needs, but also what your needs may be in the future. For example:
- Are your children able to share a bedroom?
- If you work from home, will you need a home office?
- If you have out-of-town family members who visit regularly, will you need a guest room?
Weigh the pros of having that extra bedroom against the cost, and be sure to talk to your REALTOR® for advice on what property type will be the best investment in your future.