Condos See Spike in Interest

Consumers are having a renewed interest in condos.

Whether it’s the lack of available options of single-family homes on the market or more people feeling comfortable moving back to urban areas, for the second month in a row, condos sold for more than their asking price on average, according to a Redfin report. Condos sold for an all-time high of $304,000 on average or 0.7% over asking. This is up from 0.4% in May. The national median sales price for condos jumped 20.3% year over year, a record percentage increase. Comparatively, single-family home prices increased 26.8% for an average sale price of $405,000.

For the first time in nearly a decade, condo sellers are being offered more than asking. And condos are flying off of the market, with the average condo selling in just 22 days, down from 43 days year over year. Forty-two percent of condos sold above asking price last month, up from 18.6% in June 2020.

However, just like with homes, the number of condos available on the market has decreased 18% year over year, but new listings are up 7.6%, showing just how quickly condos are moving.

“Many buyers who have been priced out of the market for single-family homes have turned to condos,” said Redfin Chief Economist Daryl Fairweather. “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.”