As COVID-19 outbreak took hold earlier this year the U.S., sales of condominiums took one of the biggest hits. Condos reached a low year-over-year point in May. That was after in late 2019—pre-pandemic for the U.S.—where condo sales were accelerating at a faster rate than single-family detached homes, reports CoreLogic, a real estate research firm.
“While the pandemic has impacted our views on the desirability of density, it is clear that home buyers have not given up on condominiums,” CoreLogic reports.
Condos are making a strong recovery since May. “Interestingly, while condominium sales took a larger dip during the peak of shelter-in-place orders, pending contracts have healthily rebounded to the same rate of annual growth for single-family homes, with both averaging about 17% year-over-year increases in the first two weeks of July,” according to the most recent data from CoreLogic.
New inventory of condominiums outpaced single-family growth in June. Inventories are constrained for both condos and single-family homes, but active condo inventories has leveled off at about a 13% decrease year over year since May compared to about 30% decrease in the inventory of single-family homes.
“The stabilization in condominium inventory reflects an increase in newly available inventory,” CoreLogic reports. “After dipping to a 50% year-over-year fall during the height of the shutdown, we have seen a rapid growth in new inventory and recorded an 8% increase by mid-July.”
The largest increase in new inventory in June was among condos priced at 200% or more of the median price, which is up 16% compared to a year prior. Newly listed inventory of condos priced below 100% of the median price was up 5% and new inventory priced between 100% and 200% of the median price was up 2% annually in June, CoreLogic reports.
Condos may be offering buyers better deals than single-family homes. The share of condos that sold below the asking price is higher than the rate of single-family detached homes, CoreLogic reports. Nevertheless, the discount on condos is at the lowest rate it has been in at least the last 2.5 years, showing that condos remain desirable even in the pandemic, CoreLogic reports.
If you’re ready to close on a condo deal, Ideal Title is ready to help. They have the professionals to assist with title and escrow needs. To find out what title insurance and closing services options are available, contact Ideal Title Agency at info@idealtitleagency.com or check them out on Facebook: facebook.com/idealtitle .
Source: “Data Showing Mixed Views on High-Density and Condo Desirability in the Face of COVID-19,” CoreLogic Insights Blog (Sept. 2, 2020)