Condominium prices hit record high
Americans who can no longer afford homes may now also be deprived of prices for condos.
The typical condominium unit in the United States sold for a record $319,000 last month, up 14.6% from a year ago, according to a new report from Redfin. The increase was caused in part by a shortage of listings for homes – which have a median price of up to $406,000 – causing buyers to turn to condos instead.
The condominium market is not yet as fierce as the single-family home market. Nearly 75% of single-detached home sales in February involved bidding wars, compared to just under 65% of condo sales. But condos have continued to heat up as more buyers are shut out of the single-detached home market.
“The condo market has rebounded,” said Chance Glover, head of Redfin in Boston. “People are no longer afraid to live downtown, close to the crowds — and they often prefer it, because it’s close to the office and all the conveniences of the city. Rising prices are making single-family homes out of reach for many buyers, so condos are affordable by comparison.
Inscriptions remain as rare as they have been for ages. Listings for condos have fallen 28% over the past year, twice as much as for single-family homes, and 40% of condos are selling above their asking price. (This is a dramatic change from the start of the pandemic, when remote work and other factors caused sales to plummet by 48%.)
The median condo price in Miami rose to $383,000, a nearly 33% year-over-year increase. Inventories fell about 30% over the same period. Condominium sales and prices increased in Broward and Palm Beach counties.
In New York, the median condo price rose 11% to $599,000. A recent Corcoran pipeline report predicted that condo development would lag in the coming years due to the pandemic hampering construction. Experts say this could keep the market tight for some time to come.