Pending sales of condominiums were down by 5.5% year-over-year last month, according to new data from Redfin (NASDAQ: RDFN). This marked the lowest level for pending condo sales in any July on record.
At the same time, the number of condos for sale rose 27.1% from one year ago. But increased supply is not driving down prices – the median condo-sale price is up 3.9% year-over-year. Lower prices are not attracting real estate investors – condo purchases by that demographic were down by 3% year-over-year in the second quarter.
The major metro markets in Florida and Texas are recording higher than average condo sale activity, with elevated HOA fees and insurance costs making these properties hard to unload while a boom in new construction of single-family and multifamily homes increases the choice for buyers.
Redfin noted the number of condos for sale in Tampa was up 57.2% year-over-year in July while pending sales dropped 18.9% and the median sale price fell 4.9%. In Houston, the condo inventory is 35.9% higher from one year ago while pending sales fell 35.3% and prices are down 6.5%.
But Redfin agents in other parts of the country reported sluggish activity in their condo markets – the condo inventory in San Jose was up 50.7% from one year earlier but prices dropped 3.2%, while in Denver pending sales of condos are down 25.4% and prices are flat.
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