Worse, there’s a record gap between the median sales price of a single-family home and the median sales prices of a condo of 17 percent, the largest difference since Redfin began comparing those figures in 2013.
When the pandemic started, home sales plunged for every property type for a few weeks, but record-low mortgage rates quickly brought buyers back into the market for single-family homes.
The condo market lagged initially because condos typically have less space, and many buyers were wary of purchasing in a high-rise building that made social distancing more difficult. Condo sales plunged 50 percent in the spring, according to Redfin, but in October sales of condos rebounded at the same price as single-family homes -- both were about 23 percent higher than in October 2019.
The resurgence of buyer interest in condos comes in part from a lack of single-family homes for sale, leaving buyers with more options if they’re willing to consider a condo. While listings of single-family homes were down 27 percent in October compared to October 2019, the supply of condos on the market rose by 5.2 percent. Condo prices have been slower to rise, up 9.9 percent in October 2020 compared to October 2019, according to Redfin, when single-family home prices rose 15.5 percent.
In another indication the lagging condo market, just 22.8 percent of condos sold for more than their listing price in October, compared to 36.6 percent of single-family homes selling for more than the asking price. Bidding wars were more common for single-family homes, too, with 59.8 percent getting multiple offers compared to 42.6 percent of condos.
Single-family homes sold in average of 27 days on the market in October, compared to 36 days for condos. The widest gap between median sales prices for single-family homes vs. condos was 38.3 percent in Ft. Lauderdale in October. Other metro areas with the highest gap included Bakersfield, Calif. (35.8 percent), Lakeland, Fla. (34.3 percent), Oklahoma City (30.3 percent) and Tucson (30.3 percent).
In the Washington area, the median sales price for a single-family home was $533,800 in October, while the median sales price for a condo was $360,000, a gap of 12.7 percent, according to Redfin.
For the full report, click here.
Read more Real Estate: