Condominiums are selling at premium prices for the first time in 9 years. The typical condo is selling in a record 22 days.
Condominiums Start Percolating in June
After its pandemic-infused sales slump, condominiums are making a play. During June 2021, the typical condo sold in a record 22 days for +0.7% above its asking price following a premium of +0.4% in May.
The months of May and June were the two times since 2012 that condos sold above their asking prices. A record 42% of condos sold above asking, more than double the 18.6% share in June 2020 and 20.2% share in June 2019.
The national median sale price for condominiums jumped a record +20.3% in June y/y to a record high of $304,000.
Redfin’s chief economist Daryl Fairweather said, “Many buyers who have been priced out of the market for single-family homes have turned to condos. Earlier in the pandemic, many buyers shunned small condos in favor of large detached homes with space for offices and homeschooling. But now that many Americans are vaccinated and some are returning to the workplace, extra space isn’t as necessary and the benefits of shared amenities like a gym or a pool are more attractive. And the biggest benefit of condo living is the more affordable price.”
Condos Sold at Fastest Pace Ever in June
The typical condo sold for $304,000 in June and it sold within 22 days, an all-time record. Last year, DOM for condos came in at 43 days and then 36 days on the market in June 2019, a better comparison because of the skewed pandemic market in 2020.
Sales Volume Up Significantly for Condos in June 2021
Again according to Redfin, seasonally adjusted condo sales jumped +59.7% y/y.
Pending sales of condos increased +38.2% y/y.
Overall Condo Inventory Down But New Condo Listings Up
The overall supply of condominiums in June 2021 was down -18% y/y. Simultaneously, new listings of condos rose +7.6%. This disparity indicated that demand for condominiums is high and that they’re selling quickly.
Condo Market Summary for June 2021
June 2021 Y/Y change
Average Premium +0.7% +2.8 points
Median Sale Price $304,000 +20.3%
Condos Sold 72,058 +59.7%
Pending Sales 64,668 +38.2%
New Listings 77,364 +7.6%
All For-Sale Condos 198,954 -18%
Median DOM 22 -21
Months of Supply 1.4 -1.8
Share of Condos 41.8% 23.2
Thanks to Redfin.
