Condominium sellers in the U.S. outnumbered buyers by 123% in September, according to a Redfin analysis. This is the largest gap in the company's data since 2013 and makes the market one of the most favorable for buyers in the past decade.
There were around 197,248 condominium sellers on the market, compared with just 88,460 potential buyers. That means there were more than two sellers for every buyer. A year earlier, the gap was 95.5%.
The change is particularly evident compared with September 2021, when sellers were 25.1% fewer than buyers. Over five years, the number of buyers has fallen by 54%, while the number of sellers has increased by 36%.
Higher costs are limiting demand
According to Redfin, demand for condominiums is under pressure due to higher building maintenance fees, insurance premiums and special assessments for repairs. The pressure is stronger in Florida and Texas, where the risk of hurricanes and other natural disasters is driving up insurance costs.
Mortgage rates are also limiting buyers' options. The average weekly rate reached 7.18% on November 5, while home prices remain near historically high levels. This particularly affects first-time buyers, who traditionally rely on condominiums as a more affordable entry point into the market.
In September, around 37% of sold condominiums had undergone at least one reduction in the asking price. During the 2021 housing boom, the share was 16%. The typical sold property spent 63 days on the market before a contract was signed, compared with 35 days five years earlier.
Prices are starting to decline
The national median price of condominiums fell 0.8% year over year to around $339,000 in September. This was the first annual decline in the past five months.
“Find a motivated seller—and there are many of them,” says Cecilia Cordova, a Redfin Premier agent in Miami.In her view, buyers should check the financial condition of the homeowners' association, insurance coverage, maintenance obligations and possible special assessments before closing a deal. For sellers who are not forced to sell, renting out the property may be an alternative to selling at a lower price.
Miami is among the least favorable markets for sellers
San Antonio has the largest imbalance among the 50 largest metropolitan areas analyzed by Redfin—there are 459% more sellers than buyers. It is followed by Houston at 322% and Miami at 274%. Austin has 258% more sellers than buyers.
Nine of the ten markets with the largest surplus of sellers are in the Sun Belt. New construction, higher ownership costs and competition from single-family homes are adding to the pressure on condominiums.
At the opposite end is Nassau County in New York State, which is the only one of the markets analyzed with significantly more buyers than sellers. Chicago, Milwaukee, New Brunswick, Newark and San Francisco were identified as relatively balanced markets.
Sources: worldpropertyjournal.com, redfin.com
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