After a pandemic-induced slump, condo sales are once again on the rise as evidenced by increasing sales and prices — according to a new Redfin report, a the median price of a condo in the country rose 20.3 percent year over year in June to an all-time high of $304,000.
The typical condo also sold for 0.7 percent above asking price, up from 0.4 percent in May. This is the second time the median condo has sold for above ask since at least 2012.
While prices for single-family homes rose more (26.8 percent to a record $405,000), the upward trend indicates that the exodus out of big cities observed at the start of the pandemic is bouncing back quickly. Urban condos are attractive for their high value and growth potential while suburban condos are a way for homeowners who would have otherwise been priced out to break into the market with a less expensive option.
As we reported in an Inman piece earlier this month, suburban condo sales in particular are soaring in suburban communities in Miami and Atlanta.
“Many buyers who have been priced out of the market for single-family homes have turned to condos,” Redfin Chief Economist Daryl Fairweather said in a prepared statement. “Earlier in the pandemic, many buyers shunned small condos in favor of large detached homes with space for offices and homeschooling. But now that many Americans are vaccinated and some are returning to the workplace, extra space isn’t as necessary and the benefits of shared amenities like a gym or a pool are more attractive. And the biggest benefit of condo living is the more affordable price.”
In total, 42 percent of condos looked at by Redfin sold above asking price in June — more than double the 18.6 percent seen in June 2020 and 10.2 percent seen in June 2019. A typical condo spent just 22 days on the market, down from 43 days last year and 36 days in 2019.
Seasonally adjusted condo sales are up 59.7 percent year over year overall while the number of condos available for sale is down 18 percent. All these signs point to a very tight market in which the number of available inventory is much lower than demand to buy it.