SEATTLE, Nov. 25, 2020 /PRNewswire/ -- (NASDAQ: RDFN) —
The typical single-family home that sold in the U.S. this year was
purchased for an average of 17.3% more ($58,000) than the typical condo, according to a
new report from Redfin (www.redfin.com), the technology-powered
real estate brokerage. That's up from 15.4% last year and
represents the largest premium since at least 2013, when Redfin
began recording this data.
The U.S. housing market has been on fire this year, with
record-low mortgage rates and remote work prompting scores of
Americans to relocate. But the condo market has missed out on much
of the gains as homebuyers have left dense cities in search of more
space and privacy—AKA single-family homes—during the coronavirus
pandemic.
The median sale price of single-family homes surged 15.5% year
over year in October, outpacing the condo market's 9.9% growth.
Condos are also taking longer to sell—the typical condo spent 36
days on the market last month, compared with 27 days for the
typical single-family home. And less than a quarter (22.8%) of
condos sold for more than their listing price, compared with 36.6%
of single-family homes.
Purchases of condos, however, have been catching up. In October,
condo sales rose 22.7% from a year earlier on a seasonally-adjusted
basis, following a 50% plunge in the spring. That's on par with the
23.3% growth in sales of single-family homes last month.
"Condos sales are rebounding because buyers are finding great
deals," said Redfin Chief Economist Daryl
Fairweather. "Families are fleeing cities in search of more
space in the suburbs, which has presented an opportunity for
millennials who are looking to become homeowners but don't need
extra bedrooms or a backyard."
October 2020 Market Summary:
Single-Family Homes Vs Condos
|
Single-family
homes
|
Condos
|
Median sale
price
|
$350,000 (+15.5%
YoY)
|
$277,000 (9.9%
YoY)
|
Median days on
market
|
27 (-17 days
YoY)
|
36 (-7 days
YoY)
|
Share of properties
that sold above
list price
|
36.6%
|
22.8%
|
Share of properties
that faced
bidding wars
|
59.8%
|
42.6%
|
Year-over-year change
in supply
(active listings)
|
-27.0%
|
5.2%
|
Year-over-year change
in homes
sold (seasonally adjusted)
|
23.3%
|
22.7%
|
Florida and California Rank
at the Top of the List When It Comes to Price Premiums for
Single-Family Homes
In the Fort Lauderdale, FL
metropolitan area, single-family homes sold for an average of 38.3%
more than condos in October—the largest premium of the 86 metros in
this analysis. It was followed by Bakersfield, CA, with a 35.8% premium, and
Lakeland, FL, at 34.3%.
Oklahoma City, OK and Tucson, AZ rounded out the top five, both at
30.3%.
In the Seattle metro, where
single-family homes are selling for a 17.9% premium, condos are
taking several months to sell rather than the usual couple of
weeks, according to local Redfin real estate agent Forrest Moody.
"Before the pandemic, it was challenging to find a condo in
Seattle for less than $500,000, but now there are plenty selling for
under $400,000. The people who are
buying condos now are the people who couldn't afford to buy one a
couple of years ago because prices were so high," he said. "I
recently sold a condo that was within walking distance of Amazon's
headquarters for $510,000. Condos in
that building normally go for $550,000 and up."
There were just three metro areas where single-family homes sold
for less than condos in October. San
Antonio saw the biggest gap, with single-family homes going
for 12.9% less than condos, followed by Omaha, NE (-6.2%) and Salt Lake City (-1.7%).
In San Antonio, there's been a
resurgence of high-end condos in the downtown area, according to
local Redfin real estate agent Jim
Seifert.
"There are more people buying condos in San Antonio than I've ever seen before,"
Seifert said. "Young people who work in tech and healthcare are
moving here from Seattle,
California, Washington, D.C. and Maryland because San
Antonio is so much more affordable, and they have a bigger
appreciation for downtown living than the average person from
Texas."
Seifert continued: "San
Antonio's condo market is also likely being fueled by the
fact that buyers know they can get in. There's a shortage of
single-family homes for sale, but the supply of condos is growing
like wildfire, so some folks are opting for condos because they
don't want to deal with a bidding war."
To read the full report, including methodology and a full list
of single-family home price premiums across major U.S. metro areas,
please visit:
https://www.redfin.com/news/single-family-home-premium-condo.
About Redfin
Redfin (www.redfin.com) is a
technology-powered residential real estate company, redefining real
estate in the consumer's favor in a commission-driven industry. We
do this by integrating every step of the home buying and selling
process and pairing our own agents with our own technology,
creating a service that is faster, better and costs less. We offer
brokerage, iBuying, mortgage, and title services, and we also run
the country's #1 real estate brokerage search site, offering a host
of online tools to consumers, including the Redfin Estimate. We
represent people buying and selling homes in over 90 markets in
the United States and Canada. Since our launch in 2006, we have
saved our customers over $800 million
and we've helped them buy or sell more than 235,000 homes worth
more than $115 billion.
For more information or to contact a local Redfin real estate
agent, visit www.redfin.com. To learn about housing market trends
and download data, visit the Redfin Data Center. To be added to
Redfin's press release distribution list, email press@redfin.com.
To view Redfin's press center, click here.
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SOURCE Redfin