The average condo sold for a record $319,000 in February, according to a Redfin report, up 14.6 percent year-over-year and 22.7 percent from two years earlier, before the pandemic began.
Condos are in demand partly because they’re a comparatively affordable option amid skyrocketing home prices and rising mortgage rates, according to Redfin. Single-family home prices hit a record $406,000 in February, up 15.9 percent year-over-year and up 34.9 percent from two years earlier.
At the beginning of the pandemic, remote work and fears about crowded spaces caused condo sales to plummet a record 48 percent. Prices dropped the most since 2012. With coronavirus cases declining and more workers returning to the office, condos are an attractive option again.
“The condo market has bounced back,” Boston Redfin Manager Chance Glover said in a release. “People are no longer afraid to live downtown, close to the crowds. They often prefer it, because they’re close to the office and all the amenities of the city. Rising prices are pushing single-family homes out of reach for a lot of buyers, so condos are affordable in comparison.”
Condo prices have jumped up partly because of the housing inventory shortage, according to Redfin. Condo supply was just shy of a record low in February, down 28 percent year-over-year. New condo listings were down 6.1 percent. Condos are experiencing an even bigger inventory decline than single-family homes, which saw a 14 percent year-over-year drop and a 2.5 percent drop in new listings.
A record 55.1 percent of condos went off the market within two weeks in February, up from 47.9 percent a year earlier. The typical condo that sold in February went under contract in 30 days, 13 days faster than a year earlier. By comparison, 62.1 percent of single-family homes sold within two weeks (compared with 58.2 percent a year earlier), and the typical single-family home sold in 24 days (seven days faster than a year earlier).
Nearly two-thirds (64.6 percent) of condo offers written by Redfin agents faced competition in February, up from 49.3 percent a year earlier. By comparison, 72.9 percent of offers for single-family homes faced bidding wars.
Meanwhile, 41.1 percent of condos sold above asking price, up from 24.9 percent a year earlier, another sign of increasing competition. Houses are still a bit more competitive, with 48.4 percent of single-family homes selling above list price (up from 38.2 percent a year earlier).