The median condo sale price in May was $354,1000, a 2.2% year-over-year decline and the second largest drop since data recording began in 2012, according to a new report by Redfin. The only time condo prices posted a larger year-over-year decline was the 2.95 drop in April 2023, which was attributed to a tumble from peak prices set roughly one year earlier.
Condo sales were down 11.9% year-over-year in May, the largest decline since June 2024 and is over three times larger than the drop in single-family-home sales (-3.7%). Redfin observed there are approximately 80% more condo sellers than buyers in today’s market, with many condo owners seeking to exit the sector due to elevated HOA fees and insurance costs. The total supply of U.S. condos for sale (active listings) hit the highest level in a decade last month, while the supply of single-family homes for sale was at the highest level since 2019.
But these problems have also raised concern among buyers, who are more focused on buying single-family homes. As a result, prices on single-family homes were up by 0.5% year-over-year in May to $462,206. And while that represents the slowest growth in nearly two years, it is still growth. Sales of both property types fell to the lowest May level since 2020.
But that’s not to say the entire nation is suffering from a condo crash. New Brunswick, New Jersey, recorded a 14.9% year-over-year condo price rise in May, followed by Montgomery County, Pennsylvania (14.1%), Pittsburgh (14.1%), San Francisco (8.8%) and Ocean City, New Jersey (8.2%). Condo sales are holding up best in Indianapolis, which posted a 27.3% year-over-year increase, followed by Portland, Maine (19.2%), Charleston, South Carolina (11.5%), Montgomery County (10.8%) and Ocean City (8.4%).
