An increasing number of U.S. homebuyers are turning to condos after getting “priced out of the market for single-family homes,” according to a new report.
In June, the typical condo sold above the asking price for the first time in about nine years, according to Redfin.
A typical condo flew off the market to the tune of $304,000, which was 0.7% above its asking price, according to the brokerage. This means the condo was listed at $301,872.
Renewed homebuyer interest in condos initially began in May following a “pandemic-fueled slump,” Redfin said.
“Earlier in the pandemic, many buyers shunned small condos in favor of large detached homes with space for offices and homeschooling,” Redfin chief economist Daryl Fairweather said.
Now, not only are “buyers who have been priced out of the market for single-family homes,” but they are also realizing that “extra space isn’t as necessary” now that an increasing number of offices and schools are opening up again, Fairweather said.
Additionally, homeowners are also becoming more drawn to the “benefits of shared amenities like a gym or a pool,” he added.
As a result, nearly 42% of condos sold above the asking price in June, according to Redfin. That’s a significant increase from 18.6% in the same period a year ago and 20.2% in June 2019.
Not only are condos selling above the asking price for the first time in years, but they are also selling at a record pace, at about 22 days.
Comparatively, condos sat on the market for roughly 43 days in 2020 and 36 days in 2019.
Redfin noted that the 2019 figures are a better comparison due to the fact that it was before the pandemic impacted the market.
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