Selling condo in 2026 realistic expectations

San Diego, California
Buying & Selling Real Estate
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Selling condo in 2026 realistic expectations

Sarah Enero
Member since 2022 · 15 posts · 11 votes

Hello, I purchased a condo in 2022 around North Clairemont neighborhood and right now it's underwater. The HOA fees nearly doubled since then and now at $660. I decided on selling this year. What realistic scenarios should I expect for selling in 2026?

This is my first property and even though I planned to hold on to it, the rising HOA fees makes it hard for me to justify holding onto it. Thanks in advance for your responses

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  • Jules Aton
    MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    8mo

    Hi Sarah it would be worth finding a knowledgeable Realtor in that area to advise if you are considering selling. I'm guessing renting isn't going great? If you add more information here it is possible members could offer options to assist with increasing rent returns. 

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  • Keith Mintz
    Real Estate Agent · San Diego, CA · Member since 2023 · 189 posts · 88 votes
    8mo
    Quote from @Sarah Enero:

    Hello, I purchased a condo in 2022 around North Clairemont neighborhood and right now it's underwater. The HOA fees nearly doubled since then and now at $660. I decided on selling this year. What realistic scenarios should I expect for selling in 2026?

    This is my first property and even though I planned to hold on to it, the rising HOA fees makes it hard for me to justify holding onto it. Thanks in advance for your responses


    That's a tough spot, and you're not alone—HOA increases have really changed the math on a lot of condos bought in 2021–2022.

    A few realistic things to expect by 2026:

    • Pricing: Much will depend on rate movement and comparable sales in your complex. Condos can recover more slowly than SFRs, especially with higher HOAs, so planning conservatively is smart.

    • Buyer pool: High HOAs shrink the owner-occupant market, which means you’ll likely compete on price and condition unless demand shifts.

    • Holding strategy: Some owners in similar situations explore mid-term or furnished rentals to offset carrying costs while waiting for the market.

    One approach I’ve seen work well is thinking about selling sooner rather than later and using a 1031 exchange to move into a property with stronger cash flow with no HOA. I always say stay away from HOA, uncontrollable expense and limited rental options.

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  • Taylor DaschBusiness Member
    Real Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
    8mo

    Ouch, that HOA jump to $660 is rough. Sorry you're dealing with that. Before you list it, have you actually run the math on renting it out even if it's cash flow negative? I know it sounds crazy to eat a monthly loss, but if you're underwater, 'losing' $200-$300 a month on rent might actually be cheaper in the short run than paying 6-8% in agent commissions and closing costs to sell right now. Plus, you avoid finalizing the loss on your equity.

    If the numbers are truly terrible and you just need out, you might want to see if your loan is assumable or look into a 'subject-to' sale. If you locked in a low rate in early 2022, that interest rate is an asset itself—an investor might be willing to take over the payments just to get the rate, which solves your problem without you having to bring cash to the closing table.

    [email protected]254-718-4249
    Taylor Dasch | EG Realty561 Reviews
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  • Bo SmithPro Member
    Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
    8mo

    Oof, doubling HOA fees hurts. Have you checked rent vs your total costs? Sometimes renting while underwater beats taking a loss. What's North Clairemont rental market like?

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  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    8mo

    @Sarah Enero, if you are looking to cut your losses but not exit RE altogether, you could do a 1031 exchange like @Keith Mintz mentioned. A 1031 exchange would allow you to defer all of your capital gains taxes and reinvest in any type of investment real estate. This would allow you to get away from an HOA that is controlling and limiting your profits.

    Or you could reinvest in multiple smaller properties. Whether you want diversification or consolidation, there are different strategies you could utilize the 1031 with.

    The 1031 Investor5137 Reviews
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