Buyers Seek Relative Affordability as Compared to Single Family Home Prices

The state-owned real estate agent Redfin announces this week that it is common in the United States Condo to sell an apartment in February 2022 for a record $ 319,000. It increased by 14.6% compared to the previous year and by 22.7% compared to the previous two years, just before the pandemic began.

There is a shortage of apartment buildings because it is possible to choose between rising house prices and rising rival prices. Prices for single-family homes reached a record $ 406,000 in February, up 15.9% from a year earlier and up 34.9% in the last two years.

The fact that condos are heating up in single-family homes is a sign of a dramatic shift since the beginning of the epidemic when teleworking and nerves in crowded areas have led to a record 48% drop in apartment sales and a sharp drop in prices since 2012. The spread of coronaviruses is declining and some Americans are returning to the office, and apartments are also attractive.

“The condo market is back,” said Chance Glover, Redfin’s head of Boston. “People are no longer afraid to live in a city close to the crowd – and they usually like it because they are close to the office and the rest of the city.

Condo supply is down, pushing up prices

Apartment prices increased in the segment due to strong share prices and subsequent competition. The number of apartment donations was a record low in February, falling by 28% year on year. Records for new apartments fell 6.1%. Apartments are falling much less than single-family homes, which fell by 14% year-on-year and new records by 2.5%.

The lack of money controlled the church’s sales, which fell by 5.3% a year, which is in line with the decline in the number of single-family homes. However, apartment sales have risen by 13% since February 2020, while sales of single-family homes have been modest.

Condos are selling two weeks faster than they were a year ago

A record 55.1% of apartments came out of the market in two weeks in February, compared to 47.9% last year. An ordinary apartment sold in February was signed under 30 days, which is 13 days faster than last year. By comparison, 62.1% of single-family homes were sold within two weeks (58.2% last year) and a typical family home was sold within 24 days (seven days faster than last year).

Condos still aren’t as competitive as single-family homes

About two-thirds (64.6%) of Redfin’s donations face competition in February, up from 49.3% last year. This is due to the scarcity of goods, as consumers compete in the market for fewer condos. By comparison, 72.9% of single-family donations face battles for supply.

At the same time, 41.1% of apartments were sold above the asking price, compared to 24.9% last year, which is another sign of increased competition. Homes are still competing, with 48.4% of single-family homes selling at a higher price (38.2% last year).

The selling price of an ordinary apartment is 0.6% higher than the asking price, which was set in June 2021 near the 0.7% premium record. Last year, for the first time, a record was shown that an ordinary apartment sells for more than the asking price. A single-family house is sold for 1.4% above the asking price.

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