While much has been written about the unique conditions regarding single-family homes (SFH) – including record low inventory and corresponding high prices – we are not seeing the same outcomes for condominiums. In fact, condos are showing an inverse reaction to the current market than are SFHs.
We know that Americans have developed a strong preference for larger homes in less dense areas, which are better suited for remote work and school during a pandemic. Meanwhile, condos – which are the exact opposite of this new ideal living situation – are significantly underperforming. In fact, in a number of urban markets, we are seeing median condominium prices actually decline, which is counter to the historically strong SFH performances we see throughout the country.
A significant example that is worth noting is in the notoriously competitive San Francisco real estate market. Here, we see that active condominium listings have skyrocketed in 2020. This number is actually at its highest level in 10 years and is especially interesting when compared to SFH inventory currently available.
We also see this play out in urban centers such as Washington DC, where the divergence of condo prices and SFH prices has been exacerbated by COVID-19.
Condos in Miami-Dade County have also not gotten the price boost seen in SFHs in the area. In fact, the median sold price of such units has remained relatively steady throughout 2020.
It will be worth watching the condominium market as we close out the year, though it does appear that these effects of the COVID-19 pandemic are here to stay for a while.
Using its Daily Home Price Flash, Black Knight’s Collateral Analytics analyzes home sales and pricing information for major U.S. markets on a bimonthly basis and publishes its findings on this blog.