Condo prices make record slide as crisis hits breaking point
Share this @internewscast.com

Condo prices across the US are plummeting — with some areas seeing values sink by a staggering one-third in just a year.

The average condo sale price in the US decreased by 2.2 percent year over year to $354,100 in May, according to a new report—marking the second largest decline in records from 2012.

The only steeper drop occurred in April 2023, shortly after the market’s post-pandemic peak, according to Redfin. 

Florida and Texas are experiencing the most significant condo price declines. In May, Deltona, Florida, experienced a price drop of over 32 percent year-over-year, the steepest nationwide. 

Crestview, Florida (down 32 percent), Houston, Texas (down 23 percent), Tampa, Florida (down 19 percent), and Oakland, California (down 20 percent) also saw substantial decreases. 

Seven of the top ten metros with the largest price declines were in Florida, two in Texas. Sellers in parts of Florida have had to drop prices below $10,000.

Sales are sliding just as fast. Markets like Dallas, Palm Bay, Port St. Lucie, and Orlando saw condo sales drop over 30 percent year-over-year, with Florida again dominating the list of hardest-hit areas.  

Condo prices are falling for a number of reasons. One major factor is that the market is flooded. There are 80 percent more condo sellers than buyers.

Florida is home to seven of the 10 metros with the largest sales declines

Aditi Jain, a Redfin agent in Boston

Aditi Jain, a Redfin agent in Boston

Many owners are racing to offload properties due to soaring HOA fees, skyrocketing insurance costs, and in some cases, hefty special assessments imposed by homeowners’ associations. 

On the other side of the table, potential buyers are hesitant — deterred by the very same costs and financing hurdles. 

‘It’s a slow housing market across the board, but condos have been hit particularly hard,’ said Aditi Jain, a Redfin agent in Boston. ‘A lot of condo associations don’t allow buyers with FHA loans, which is limiting sales.

‘Two of my clients who want to buy a condo have had to back out of a purchase because they couldn’t get financing.’

The Federal Housing Administration (FHA) offers a type of mortgage geared toward borrowers with lower credit scores or who otherwise don’t qualify for a conventional mortgage.

Condos, often thought of as the affordable route to homeownership, are now viewed as an increasingly risky investment in many parts of the country.

As a result, they take longer to sell than they did in the past. The typical condo that went under contract in May did so in 46 days—the longest for any May since 2015 and up seven days from a year earlier.

By comparison, the typical single-family home went under contract in 38 days—the longest for any May since 2020 and up six days from a year earlier.

Supply just keeps growing while demand is receding for homes in Dallas, Texas

Supply just keeps growing while demand is receding for homes in Dallas, Texas 

Phoenix, AZ, was among the metros where condo sales were falling fast

Phoenix, AZ, was among the metros where condo sales were falling fast

Because condos are sitting on the market, listings are piling up. The total supply of US condos for sale (active listings) hit the highest level in a decade last month, while the supply of single-family homes for sale was at the highest level since 2019.

With prices falling and listings lingering on the market, condo buyers in many cities may be able to find sellers who are willing to give concessions or sell for less than their asking price.

Florida and Texas have seen their housing markets slow in recent years due to an influx of supply ushered in by the pandemic homebuilding boom.

Rising HOA dues and insurance costs have exacerbated the slowdown for condos.

In Florida, natural disasters and heightened building regulations also contributed. The 2021 collapse of a condo building in Surfside, FL, led to a new law that requires condo buildings to undergo structural inspections and shore up reserves.

Many HOAs have been hiking fees and doling out hefty special assessments to comply with the new rules, reducing demand for condos.

Condos were doing better in the Eastern US.

New Brunswick, NJ saw condo prices rise 14.9 percent year over year in May—the largest jump among the metros analyzed.

Downtown Portland, ME, where condo prices have increased while they drop elsewhere

Downtown Portland, ME, where condo prices have increased while they drop elsewhere

David Podein, Equity Partner and Chair of the Real Estate and Transactional Law Group at Miami based Haber Law

David Podein, Equity Partner and Chair of the Real Estate and Transactional Law Group at Miami based Haber Law

It was followed by Montgomery County, PA (14.1 percent), Pittsburgh, San Francisco, and Ocean City, NJ.

Many markets in the east are still grappling with a supply crunch, which may be buoying prices.

Condo sales are holding up best in Indianapolis, which posted a 27.3 percent year-over-year increase. Next came Portland, ME, Charleston, SC, and Ocean City, NJ.

Meanwhile, David Podein, a real estate attorney at Miami-based Haber Law, has been on the front line of the condo crisis in Florida since the collapse. 

He is directly involved in helping associations across South Florida navigate the legal, financial, and construction challenges that come with special assessments and capital repairs of condos.

To date, he has secured over $100 million in bank loans for condo associations to fund urgent improvements and avoid displacement of residents, especially older people.

He also advises lenders, boards and contractors on structuring these deals.

Podein says Florida is going through a ‘tale of multiple markets,’ that’s seeing buyers looking for newer, up to code builds rather than condos more than 30 years old.

For these older condos, many filled with retirees and older people, have lost their appeal.

Share this @internewscast.com
You May Also Like

Mother recounts how her daughters stayed safe at Camp Mystic during Texas floods

A couple whose three daughters were at Camp Mystic during the devastating…

Research on Autism Reveals Distinct Subtypes, Revolutionizing Diagnosis and Treatment Approaches

Scientists have identified four unique categories of autism, each with its specific…

American Beverage Association: Transparency Effort Driven by Consumer Influence, MAHA

The American Beverage Association’s (ABA) latest transparency initiative, GoodtoKnowFacts.org, was inspired by…

Don Jr.’s Son Backs Kimberly Guilfoyle as Trump’s ‘Belle’ in Greece

President Donald Trump’s 16-year-old grandson showed his support in Washington, D.C., on…

Near-Disaster Avoided at San Francisco Airport Following Incident

A close call at San Francisco International Airport was narrowly avoided thanks…

Specialists Unveil the Ideal Exercise Routine for Effective Weight Loss

Finding it difficult to keep up with your summer workout goals? Your…

The on-trend paint color experts advise avoiding

Millennials have faced significant challenges in entering the property market, but those…

Tucker Carlson’s Shocking Theory on Trump’s Concealment of Epstein’s List

Tucker Carlson believes the government is ‘covering up’ the Epstein files to protect US…

Kennedy Heir Criticizes Jacqueline Onassis in Controversial Post

Jaqueline Kennedy Onassis’ wayward grandson has belittled the former first lady’s private…

Macron Shares a Moment with Kate at a Star-Studded Banquet Featuring Jagger and Elton

A winking Emmanuel Macron bonded with the Princess of Wales after clinking…

Ted Cruz Expresses Desire for a ‘Time Machine’ to Prevent Texas Flooding

Texas Senator Ted Cruz gave an emotional speech Wednesday about the deadly floods…

Why Brigitte Macron Appeared Reserved During the UK State Visit

French first lady Brigitte Macron seemed distant during her state visit to…