Redfin Reports Condo Prices See Second-Largest Drop on Record

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Redfin, Seattle, found the median U.S. condo sale price fell 2.2% year-over-year to $354,100 in May, the second-largest drop in records dating back to 2012.

The only larger annual decline was in April 2023, when prices fell 2.9% year-over-year. However, Redfin noted that was because one year prior, prices peaked for condos and other property types.

Now, there’s a different factor, Redfin concluded: There are about 80% more condo sellers than buyers right now. HOA fees and insurance costs have pushed up the cost to own for many condos, leading to owners attempting to offload them.

Sales of condos fell 11.9% year-over-year in May, the largest decline since June 2024 and the second lowest level on record for any May. The decrease was also significantly larger than the drop in single-family home sales, at 3.7%.

The typical condo that went under contract in May did so in 46 days, up seven days from May 2024. That’s also the longest for any May since 2020. In comparison, the average single-family home went under contract in 38 days.

Deltona, Fla., saw the largest drop in the median condo sale price, down 32.2% year-over-year. It was followed by Crestview, Fla., (down 32%), Houston (down 23%), Oakland, Calif., (down 20.3%) and Tampa, Fla. (down 19%).

In contrast, prices are hold up best on the East Coast, with New Brunswick, N.J., up 14.9% year-over-year, followed by Montgomery County, Pa., (up 14.1%), Pittsburgh (up 14.1%), San Francisco (up 8.8%) and Ocean City, N.J. (up 8.2%).