Amid Price Drops, Condos Hold Up Better Than Single Family HomesBy RISMedia Staff
Home prices have dropped 8.6% year-over-year, while condo prices only decreased 4.4%, according to a new report from Point2.
Point2’s report on current home price corrections found that condo prices decreased in only 65 of the 100 largest cities, while home prices decreased in 88. Also, condo prices kept rising in 33 of the 100 largest cities, whereas single-family home prices only continued their upward trajectory in 10 cities. Point2 stated that the evolution of single-family home and condo prices in the 100 largest cities shows that increasing demand for condos makes prices in this segment hold up much better than single-family home prices. Key highlights:
“The current trend reversal is a direct result of houses—especially big houses—dominating the mindset of buyers all throughout the nation for two whole years during the pandemic. The need for space was felt so acutely during lockdown that renters and even existing homeowners were extremely determined to find more spacious homes to accommodate their new lifestyle,” said Andra Hopulele, senior real estate writer for Point2 and author of the report. “And, more than just determined, buyers were also willing and able to pay increasingly more for more space. When interest rates were hovering around 3% (although sustained demand pushed prices higher and higher) buyers still had the courage to take the plunge.” Added Hopulele, “But increasing interest rates were the straw that broke the buyers' back, forcing them to take into consideration the more affordable alternative. Those who still wanted to make the move to homeownership were now choosing condos over houses.” For the full report, click here. |
Today's Top Stories |