{"id":2139,"date":"2022-04-08T10:00:00","date_gmt":"2022-04-08T14:00:00","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=2139"},"modified":"2024-04-25T23:18:46","modified_gmt":"2024-04-26T03:18:46","slug":"condo-prices-surge","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/condo-prices-surge\/","title":{"rendered":"Condo Prices Surge"},"content":{"rendered":"\n
\"Condos<\/figure><\/div>\n\n\n\n

With Hopeful Buyers Looking Everywhere\u2026<\/p>\n\n\n\n

It\u2019s Spring 2022. We have just lived through a remarkable migration phase in U.S. real estate history. The coronavirus emergency, followed by the shift to remote and hybrid workplaces, sent many home buyers out of crowded and expensive cities, and into suburban and rural areas. Throughout the past two years, demand for single-unit houses has done nothing but shoot up. And the price of houses got so high (average is now $400K-plus!) that most hopeful buyers today are priced out.<\/p>\n\n\n\n

The latest push out there? Finding a condo for sale. It\u2019s a cheaper path \u2014 but only relatively, and maybe not for much longer.<\/p>\n\n\n\n\n\n\n\n

Sticker Shock: Typical Condo Now Above $300K<\/h2>\n\n\n\n

According to Redfin\u2019s review of listing data and public records, the typical U.S. condo as of Feb. 2022 sells for a record-high $319,000. The cost of a condo is up about 15% from the year before (and 22.7% from two years earlier, just before the pandemic began). <\/p>\n\n\n\n

Condo bidding wars are now a thing. Four in ten condos are selling for more than the asking price as of early 2022.<\/p>\n\n\n\n

With houses, the bidding wars were already notorious. Most houses for sale still draw multiple offers. This activity has pressed single-unit house prices up nearly 35% since February 2020. People keep trying to buy, as mortgage rates have broken above the 4% line<\/a>. People who can qualify want to nab a mortgage before interest rates climb back up to the 5% line and above.<\/p>\n\n\n\n

\u261b<\/em> NEWS FLASH from <\/em><\/strong>Freddie Mac, Apr. 7, 2022<\/em><\/a>: The new\u00a0Primary Mortgage Market Survey\u00ae\u00a0shows the average 30-year fixed-rate mortgage as 4.72%. Over the last three months, rates went up 1.5% \u2014 the fastest pace on record since May 1994.<\/em><\/strong><\/p>\n\n\n\n

No wonder people are trying to buy condos at this time. Condos are within the financial reach of more people. But like apartments, condos are getting pricier every month \u2014 in a housing market that\u2019s now OMG unbearable<\/em><\/a>!<\/p>\n\n\n\n

What Revived the Condo Market?<\/h2>\n\n\n\n
\"What<\/figure><\/div>\n\n\n\n

The rise in condo shoppers is particularly striking because of its newness. People were not necessarily looking for condos during the 2020 migration shift out of cities. They were more interested in yards and privacy in the midst of a nerve-wracking public health scare. So, at first, condo prices in many areas dipped.<\/p>\n\n\n\n

In mid-2021, we noted that condos stood out as a relative bargain<\/a>.<\/p>\n\n\n\n

In 2022, with some semblance of normalcy returning, people are no longer hesitant to buy property in dense areas. And condos are back in demand. <\/p>\n\n\n\n

And as demand goes up, it\u2019s getting harder to find condos for sale. As soon as the typical condo hits the market today, buyers notice. Most condos are now sold within the month. More than half are under contract within two weeks, as of February 2022. (By comparison, the typical detached house now sells in 24 days).<\/p>\n\n\n\n

The upshot here? People who\u2019ve been priced out of the market for houses could now face intense competition for the available condos, too. Bidding wars for condo properties are becoming normal.<\/p>\n\n\n\n

As always, much depends on where people are willing and hoping to buy. St. Louis, for example, has a relatively high condo supply for buyers to consider.<\/p>\n\n\n\n

But we\u2019re empathetic here to the fact that not everyone can simply avoid certain high-priced markets and move wherever they want.<\/p>\n\n\n\n

Here are some of those very pricey markets, according to the new Redfin survey.<\/p>\n\n\n\n

Where the Condo Market Is Surging Most in 2022<\/h2>\n\n\n\n

Condo prices are shooting up nearly everywhere. Here are some of the most notable impacts by location over the past year:<\/p>\n\n\n\n