While home sales have dipped and bounced back in major markets throughout 2020 and the COVID pandemic, condo sales are sluggish across the country. Per Redfin, condo sale prices dropped 1.4% nationally year over year to a median of $252,000 in June 2020. After two years of rising prices, this marks the second consecutive month of decline.
Sales fell 31.3% year over year in June, following a 53.5% drop in May when condo sales growth bottomed out. Single-family home sales are also experiencing smaller drops, with an 11.9% year-over-year decline in June after a 27.6% drop at their low point in May.
“The pandemic has fundamentally changed what a lot of buyers are looking for in a home,” said Redfin economist Taylor Marr, as reported by World Property Journal. “People are spending more time at home and less time at the office or school, and that means buyers want more space and private yards. And because of concerns about the virus, they aren’t as interested in shared amenities like elevators, community pools and gyms, which have traditionally been benefits of condo living. But condos tend to be more affordable than single-family homes, especially now with historically low mortgage rates and the fact that condo prices are down from last year while they’re up for single-family homes. Those factors are motivating some buyers to jump back into the condo market, particularly those who have found that purchasing a condo is just as affordable as renting an apartment.”
Pending condo sales were also down slightly at 4% year-over-year in June. Given that this represents a rebound from the bottom in April, experts point optimistically point to a slow return in demand for condos.