Home buyers drive condo sales prices to 9-year high

Home buyers grew tired of sky-high prices and bidding wars for single-family homes in June, so they set their sights on the condo market.

This enhanced demand pushed the average condo to multiple all-time highs in June, according to Redfin. The median sales price jumped 20.3% year-over-year to $304,000, 42% sold above asking, and the average sold for 0.7% above the listing price — for only the second time since 2012. Meanwhile, single-family property prices surged 26.8% from the year prior to a record $405,000 in June.

Condos also sold at the fastest pace ever, 22 days compared to 43 days in June 2020 and 36 days in June 2019. With more consumers returning to cities, June condo sales spiked 59.7% annually and pending sales rose 38.2%. This reversal from the early COVID-19 era dropped the total for-sale units by 18% while new listings grew 7.6%.

“Earlier in the pandemic, many buyers shunned small condos in favor of large detached homes with space for offices and homeschooling,” Chief Economist Daryl Fairweather said in the report. “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.”

Among the largest 85 metropolitan areas in the U.S., Oklahoma City saw the biggest annual price increase at 78.5%, followed by 47.1% in Bakersfield, Calif., and 44.8% in New Orleans. Only St. Louis and Philadelphia experienced price declines at 2.5% and 4.8%, respectively.

Austin, Texas had the highest above-asking price average at 5.6%, with Rochester, N.Y.’s 4.9% and San Francisco’s 4.8% right behind. The typical condo sold above listing in 52 of the 85 markets. Oakland, Calif., had the largest share sold above asking at 74.1%, trailed by 69.2% in Worcester, Mass., and 67.7% in Oxnard, Calif.