Interest in condominiums appears to be rebounding after dipping during the pandemic, according to new numbers from Redfin.
The national real estate brokerage reported that the typical condo sold for 0.7% above asking price in June, up from 0.4% in May. The two months mark the only times since at least 2012 that the typical condo nationwide has sold above asking price.
“Many buyers who have been priced out of the market for single-family homes have turned to condos,” said Daryl Fairweather, Redfin’s chief economist. “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.”
The recent bump in selling price is being boosted somewhat by seasonality; average sale-to-list price ratios generally peak in May or June every year. This year, however, is the first as a whole in Redfin’s records that condos on average have sold above asking price, rather than below.
The renewed attention is driving condo prices upward, with the national median sale price for condos reaching an all-time high of $304,000, per Redfin. Prices sprang a record 20.3% year over year in June — another all-time high, although that figure is artificially inflated because COVID-related restrictions significantly held back prices last summer.
Condo-price growth still lags behind the price growth of single-family homes, which saw an annual price jump of 26.8% in June, according to Redfin data. But it’s still clear that the condo revival is under way: Condos sold at the fastest pace ever in June, coming off the market in 22 days. That’s down from 43 days last year in 36 days in June 2019. And nearly 42% of condos sold last month went above asking price, another record and more than double the 20.2% share that did in June 2019.
Meanwhile, new condo listings are up 7.6%, while the number of condos for sale (seasonally adjusted) fell 18% year over year, suggesting that demand remains high.