A new data report by the Rocket Companies (NYSE: RKT) division Redfin has determined there were an estimated 72.3% more condo sellers than buyers (108,945 more) nationwide during August. This marked the fifth straight month in which there have been at least 70% more condo sellers than buyers.
Redfin added the latest data showed the spring and summer of this year was the strongest buyer’s market for condo buyers in records dating back to 2013 – not including the pandemic disruption in April 2020 when homebuying activity halted.
The lopsided market was blamed on near-record prices and high mortgage rates, coupled with new condo rules and regulations in many markets and a stagnation in value – Redfin noted that one in 10 are at risk of selling at a loss, while the typical sold in August went for 2% less than its asking price. Complicating matters furthers is the exiting of investors from this sector – investor purchases of condos dropped 13% year-over-year in the second quarter, the largest decline in two years.
“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 Asad Khan, a senior economist at Redfin. “Condo buyers can negotiate prices down and ask sellers for concessions, and they have a lot of options to choose from. Even though condo prices are still fairly high and HOA fees are rising, condos are still more affordable than single-family homes. That’s especially true for people planning to hold onto their condo for several years. With some would-be condo sellers pulling back, buyers may not have this much negotiating power for long.”
It isn’t the prices of the condo. It’s the darn HOA fees that keep rising. People can afford the condos. The HOA put the price out of their pockets.
What I don’t understand is why two HOA fees. One is an annual, then quarterly. Some condos association have monthly fees. I’m told by those who live in condos is that the associations set the fees and they can charge whatever the few members of the association chose without the consent of the condo owners.
If members of the association can charge whatever those choose, that will keep me from going the route. I think the condo owners should have a say in this. Not use a few who may be lining their own pockets. I don’t trust people who raise HOAs without consent.