Homebuyers Are Turning Back to Condos After Pandemic-Driven Slump

Rhea-AI Summary

In June, the U.S. condo market saw significant growth, with the typical condo selling for $304,000, 0.7% above its asking price. This marks the second consecutive month of selling above asking since 2012. Nearly 42% of condos sold above asking, doubling the rate from June 2020. The speed of sales intensified, with condos going under contract in an average of 22 days. However, overall inventory dropped 18%, indicating robust demand. Year-over-year, condo sales surged 59.7%, while pending sales rose 38.2%.

Positive

• Condos sold for 0.7% above asking price in June, indicating strong demand.
• 42% of condos sold above asking price, significantly up from previous years.
• Condos sold at the fastest pace on record, with an average of 22 days on market.
• Condo sales increased by 59.7% year-over-year, showing market recovery.

Negative

• Overall inventory of condos dropped by 18%, indicating a tight market.

SEATTLE, July 21, 2021 /PRNewswire/ -- (NASDAQ: RDFN) — The typical condo in the U.S. sold above its asking price in June for just the second time since at least 2012, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. The first time was in May, signaling renewed homebuyer competition for condos after a pandemic-fueled slump. 

Nationwide, the typical condo sold for 0.7% above its asking price in June, following a premium of 0.4% in May. In dollar terms, the typical condo sold for $304,000 in June. If it sold for 0.7% above its asking price, that means it was listed for $301,872.

The pattern is somewhat seasonal, as average sale-to-list ratios for condos typically peak in May or June, but this is the first year condos are selling above asking price rather than below. The data in this report is from a Redfin analysis of MLS data and public county records.

The national median sale price for condos rose a record 20.3% year over year in June to an all-time high of $304,000. Prices for single-family homes increased even more, up 26.8% to a record $405,000. Note that pandemic lockdowns significantly slowed homebuying and selling in June 2020, which means the year-over-year trends for home prices, sales and new listings are larger than they would be in a typical year.

"Many buyers who have been priced out of the market for single-family homes have turned to condos," said Redfin Chief Economist Daryl Fairweather. "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."

Nearly 42% of condos sold above asking price in June, another record. That's more than double the 18.6% share in June 2020 and the 20.2% share in June 2019.

Condos sold at their fastest pace on record in June, with the typical condo that sold during the month going under contract in 22 days. That's down from 43 days a year earlier and 36 days in June 2019, the latter of which is a better comparison because it was before the pandemic impacted the condo market.

Seasonally adjusted condo sales were up significantly in June, rising 59.7% year over year, and pending sales were up 38.2% year over year.

At the same time, the number of condos for sale (seasonally adjusted) dropped 18% from a year earlier, while new listings were up 7.6%. The fact that new listings are up while overall supply is down indicates that demand is high, and condos are selling quickly.

U.S. housing market summary: Condos, June 2021
	June 2021	Year-over-year change
Average premium above asking price (%)	0.7%	2.8 pts.
Median sale price	$304,000	20.3%
Condos sold, seasonally adjusted	72,058	59.7%
Pending sales, seasonally adjusted	64,668	38.2%
New listings, seasonally adjusted	77,364	7.6%
All condos for sale, seasonally adjusted	198,954	-18%
Median days on market	22	-21
Months of supply	1.4	-1.8
Share of condos that sold above list price	41.8%	23.2 pts.

To read the full report, including charts and additional metro-level data highlights, please visit: https://www.redfin.com/news/condo-comeback-selling-above-asking-price/

About Redfin
Redfin (www.redfin.com) is a technology-powered real estate broker, instant home-buyer (iBuyer), lender, title insurer, and renovations company. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 95 markets across the U.S. and Canada and employ over 4,100 people.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

 

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SOURCE Redfin

FAQ

What was the typical condo sale price in June 2021 for RDFN?

In June 2021, the typical condo sold for $304,000.

How much above asking price did condos sell in June 2021 according to RDFN?

Condos sold for an average of 0.7% above asking price in June 2021.

What percentage of condos sold above asking price in June 2021 for RDFN?

Nearly 42% of condos sold above asking price in June 2021.

How quickly were condos selling in June 2021 according to RDFN?

Condos went under contract in an average of 22 days in June 2021.

What was the year-over-year change in condo sales for RDFN in June 2021?

Condo sales increased by 59.7% year-over-year in June 2021.