Sellers of condominiums in the U.S. outnumbered buyers by 72.3% in August, marking the fifth straight month that sellers exceeded buyers by more than 70%. It caps a spring and summer homebuying season that Redfin calls “the strongest buyer’s market for condo buyers in records dating back to 2013.”
Redfin defines a buyer’s market as one where there are at least 10% more sellers than buyers. But the real estate brokerage company is careful to point out that a buyer’s market doesn’t necessarily equate to homebuying affordability.
The median sales price of a condo was $350,000 in August, according to Redfin, which is down 0.9% year over year. But other condo-specific costs have continued to rise, including homeowners association fees, insurance costs and special assessment fees from municipalities.
With fewer condo buyers competing for inventory, those that are willing absorb heightened HOA fees and insurance costs are in a better position to negotiate a lower price, according to Asad Khan, a senior economist at Redfin.
“With condo buyers in the driver’s seat and rents poised to rise as multifamily construction declines, it may be a good time to make the switch from renting an apartment to owning a condo,” Khan said in a press release.
He added that “even though condo prices are still fairly high and HOA fees are rising, condos are still more affordable than single-family homes.”
According to Redfin data, a typical condo in the U.S. sold for 2% less than its asking price in August. Condos took an average of 58 days to go under contract, which is longest amount of time in the past 12 years for the month of August.
Investor demand has also slowed, the company noted, with investor purchases of condos falling 13% year over year.
Among 50 top U.S. metropolitan areas analyzed by Redfin, San Antonio had the largest condo buyer-seller disparity in August, with 385.8% more sellers than buyers. Miami was next with 251.3% more sellers, followed by Tampa, Fla. (241.2%), Nashville, Tenn. (224.6%) and Austin, Texas (223.8%).
Just seven of the top 50 metros tracked by Redfin had more condo buyers than sellers in August, including Chicago, Cleveland, New York City and Newark, N.J.
