With single-family home prices surging in many markets, condos are some buyers only option. However, if February’s numbers are any indication, some many soon find themselves priced out of the condo market as well.
According to Redfin, the typical U.S. condo sold for a record $319,000 in February, up 14.6 percent from a year earlier and 22.7 percent from February 2020, just before the pandemic began.
The rise in condo prices is unexpected by most standards. Redfin notes that at the beginning of the pandemic, condo sales dropped a record 48 percent—with prices following suit—as remote work left many desiring more space while nerves were high regarding crowded/communal spaces.
And today’s fast-paced seller’s market extends to condos, as well. While the typical single-family home spent 24 days on the market last month, condos were on the market only slightly longer at 30 days. And condos are experiencing an even bigger inventory decline than single-family homes, as condo supply was just shy of a record low in February, down 28 percent year-over-year.
New condos listings were down 6.1 percent last month, which in part explains the 5.3 percent drop in sales in February compared to a year earlier. However, looking at pre-pandemic data, condo sales were up13 percent from February 2020.