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The median U.S. condo merchantability terms fell 2.2% twelvemonth implicit twelvemonth to $354,100 successful May—the 2nd largest driblet successful records dating backmost to 2012. That’s according to a caller report from Redfin, the technology-powered existent property brokerage.
The lone clip condo prices posted a larger year-over-year diminution was successful April 2023 (-2.9%), and that was mostly due to the fact that astir 1 twelvemonth prior, prices peaked (this was existent crossed each spot types).
Today, condo prices are falling due to the fact that determination are astir 80% much condo sellers than buyers successful the market. Many condo owners are trying to offload their properties due to the fact that HOA fees and security costs person been soaring, and immoderate homeowners’ associations are doling retired hefty peculiar assessments. Many location hunters are hesitant to acquisition a condo for the aforesaid reasons.
“It’s a dilatory lodging marketplace crossed the board, but condos person been deed peculiarly hard,” said Aditi Jain, a Redfin Premier existent property cause successful the Boston area. “A batch of condo associations don’t let buyers with FHA loans, which is limiting sales. Two of my clients who privation to bargain a condo person had to backmost retired of a acquisition due to the fact that they couldn’t get financing.”
The U.S. single-family location marketplace is cooling, but not arsenic rapidly arsenic the condo market; the median merchantability terms of single-family homes roseate 0.5% twelvemonth implicit twelvemonth successful May to $462,206. That’s the slowest maturation successful astir 2 years—but it’s inactive growth.
Condo Sales Drop 12% arsenic Many Properties Linger connected the Market. Sales of condos fell 11.9% twelvemonth implicit twelvemonth successful May. That’s the largest diminution since June 2024 and is implicit 3 times larger than the driblet successful single-family-home income (-3.7%). Sales of some spot types fell to the lowest May level since 2020. For condos, that means income were astatine the 2nd lowest level connected grounds for the period of May.
Condos, often thought of arsenic the affordable way to homeownership, are present viewed arsenic an progressively risky concern successful galore parts of the country. As a result, they instrumentality longer to merchantability than they did successful the past. The emblematic condo that went nether declaration successful May did truthful successful 46 days—the longest for immoderate May since 2015 and up 7 days from a twelvemonth earlier. By comparison, the emblematic single-family location went nether declaration successful 38 days—the longest for immoderate May since 2020 and up six days from a twelvemonth earlier.
Because condos are sitting connected the market, listings are piling up. The full proviso of U.S. condos for merchantability (active listings) deed the highest level successful a decennary past month, portion the proviso of single-family homes for merchantability was astatine the highest level since 2019.
With prices falling and listings lingering connected the market, condo buyers successful galore cities whitethorn beryllium capable to find sellers who are consenting to springiness concessions and/or merchantability for little than their asking price.
Condo Prices and Sales Are Falling Fastest successful Florida and Texas. In Deltona, FL, the median condo merchantability terms dropped 32.2% twelvemonth implicit twelvemonth successful May—the largest diminution among the metros successful this analysis. Redfin analyzed the 66 U.S. metropolitan areas that had capable information and astatine slightest 100 condo income successful some May 2025 and May 2024. Next came Crestview, FL (-32%), Houston (-23%), Oakland, CA (-20.3%), Tampa, FL (-19%). Of the 10 metros with the largest terms declines, 7 are successful Florida and 2 are successful Texas.
There was a akin inclination for sales. Condo income fell fastest successful Dallas (-33.3%), Palm Bay, FL (-32.8%), Phoenix (-32.7%), Port St. Lucie, FL (-31.5%) and Orlando, FL (-31%). Florida is location to 7 of the 10 metros with the largest income declines.
Florida and Texas person seen their lodging markets dilatory successful caller years owed to an influx of proviso ushered successful by the pandemic homebuilding boom. Rising HOA dues and security costs person exacerbated the slowdown for condos. In Florida, earthy disasters and heightened gathering regulations besides contributed. The 2021 illness of a condo gathering successful Surfside, FL, which killed astir 100 people, led to a caller instrumentality that requires condo buildings to acquisition structural inspections and enactment up reserves. Many HOAs person been hiking fees and doling retired hefty peculiar assessments to comply with the caller rules, reducing request for condos.
Condo Prices Are Holding Up Best successful the East. New Brunswick, NJ saw condo prices emergence 14.9% twelvemonth implicit twelvemonth successful May—the largest leap among the metros Redfin analyzed. It was followed by Montgomery County, PA (14.1%), Pittsburgh (14.1%), San Francisco (8.8%) and Ocean City, NJ (8.2%). Many markets retired eastbound are inactive grappling with a proviso crunch, which whitethorn beryllium buoying prices.
Condo income are holding up champion successful Indianapolis, which posted a 27.3% year-over-year increase. Next came Portland, ME (19.2%), Charleston, SC (11.5%), Montgomery County (10.8%) and Ocean City (8.4%).
The station Inventory Stagnates arsenic Phoenix Condo Sales Slide More Than 30% appeared archetypal connected Greater Phoenix In Business Magazine.
