Condo Values Have Fared Better Than Single-Family Homes — Where Have Prices Fallen the Most?

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Recent dips in U.S. home values have been some housing analysts warning of a potential collapse in 2023, though if it happens, the pain won’t be evenly distributed across the country. Certain regions and states will feel more of the effects than others. These same concerns are applicable to all home types. condominiums likely to hold their value better than single-family homes.

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A new study by real-estate search portal Real Estate Search Portal found that condo prices are more resistant to price drops than single-family houses. Point2 Homes. It looked at single-family and condo home prices in the 100 most populous U.S. towns from May to October 2022.

Among the study’s findings was that, when compared to their spring price peak, condo prices contracted by only 4.4% nationally vs. 8.6% for single-family homes. Condo prices dropped in 65 of the 100 largest cities, and single-family home prices fell for 88.

The COVID-19 pandemic caused a lot of the differences.

“When the pandemic forced everyone to cram their entire life inside their homes, spacious, single-family homes (preferably with a backyard) became a must,” the Point2 study stated. “Consequently, homebuyers went into a real house hunting frenzy, jumpstarting a period of bitter bidding wars and rapidly escalating asking prices.”

Housing market softens due to high prices

Many house hunters sought out more affordable options due to the high price of single-family homes. This helped drive demand for condos, leading to higher prices in that market as well — particularly earlier in the year.

Redfin reported that the average U.S. condo sold in February 2022 for a record $319,000, an increase of 14.6% from last year and 22.7% from two previous years. However, this was still a great deal compared to single family homes. The record single-family home price reached $406,000 in the same month, an increase of 15.9% over a year and 34.9% over two years ago.

Now that the U.S. housing market is softening, single-family homes are going through a “dramatic price correction,” according to Point2. That’s not the case with condos. As Point2 noted: “Increasing demand for condos makes prices in this segment hold up much better than single-family home prices.”

That doesn’t mean you can’t find good deals on condos. Despite the fact that prices have dropped only 4.4% nationwide since their peak in spring, there have been steeper drops in some cities.

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If you’re in the market for a condo and have the flexibility to move, here are the 10 U.S. cities that showed the biggest median price decreases between May and October 2022:

City

Median condo price (May)

Median condo price (October)

Diminution

Stockton (California)

$252,500

$180,000

29%

Raleigh, North Carolina

$318,750

$238,750

25%

New Orleans, Louisiana

$350,000

$270,000

23%

Omaha, Nebraska

$248,000

$195,900

21%

Glendale, Arizona

$221,000

$175,000

21%

Oakland, California

$647,500

$525,000

19%

Cincinnati, Ohio

$220,000

$181,500

18%

Durham, North Carolina

$270,500

$225,500

17%

Austin, Texas

$497,350

$417,500

16%

Sacramento, California

$364,000

$307,000

16%

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This article was originally published on GOBankingRates.com: Condo Values Have Fared Better Than Single-Family Homes — Where Have Prices Fallen the Most?

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