The housing market is at something of a standoff, with high prices and sticky mortgage rates keeping many buyers and sellers alike on the sidelines. But there’s one type of home where potential buyers have a glut of listings to choose from: condominiums.
In August, Redfin reported 72% more condo sellers than buyers. That dwarfs the 30% gap for single-family homes. This marked the fifth straight month condo sellers outnumbered buyers by at least 70%, peaking at 81% in April.
Why This Matters
If you’ve been priced out of the housing market, condos may offer a rare opening. With far more sellers than buyers, you could find better prices, more options, and room to negotiate.
What’s Going On?
Paradoxically, condos are in a buyers’ market because people aren’t buying. High prices, steep HOA fees, and concerns about natural disasters have pushed buyers away, creating the biggest market imbalance since 2013 (excluding 2020, when the pandemic brought homebuying to a halt), Redfin reported.
“I’d say we have enough condo inventory for two years’ worth of buyers,” said Cecilia Cordova, a Redfin agent based in Miami. The market is still dealing with the scars of a 2021 condo collapse, which resulted in 98 deaths, she added.
“Condo listings have been piling up since the Surfside building tragedy,” Cordova said. “That scared prospective buyers away from condos both because of legitimate safety fears and because it changed condo laws, which upped HOA and insurance fees.”
Condo Buyers Have Negotiating Power
Condos do offer some advantages right now. In August, the median condo price was $350,000—well below the $460,000 median for single-family homes, according to Redfin. And with more sellers than buyers, condo shoppers may have greater negotiating power.
“With condo buyers in the driver’s seat and rents poised to rise as multifamily construction declines, it may be a good time to make the switch from renting an apartment to owning a condo,” said Redfin senior economist Asad Khan. “Condo buyers can negotiate prices down and ask sellers for concessions, and they have a lot of options to choose from.”
The Top Buyers’ Markets Are in Florida and Texas
Condo sellers outnumber buyers by the widest margin in Texas and Florida, where beachfront properties abound, Redfin reported. In August, San Antonio had four times as many sellers as buyers, with Miami, Tampa, Austin, and Nashville close behind.
However, there are a few U.S. cities with more buyers than sellers. Nassau County, New York, which covers a portion of Long Island, had nearly twice as many buyers as sellers in August. Newark, New Jersey, Montgomery County, Pennsylvania (which includes part of Philadelphia), and Cleveland are other exceptions.
The Bottom Line
Condominium sellers outnumbered buyers by more than 70% for the fifth-straight month in August, according to Redfin. Although condos come with HOA and insurance costs, their median price is lower than that of a single-family home, and the buyer’s market offers potential deals.
