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Condos are becoming a hot choice for home buyers, particularly buyers searching for greater affordability in a rapidly rising market. However, these transactions aren’t coming cheap. The median existing condo and co-op sales price was $305,400 in February, an annual increase of 10.9%, according to the National Association of REALTORS®.
But that is significantly lower than the median list price for a home, which has increased to $405,000, according to a recent report from realtor.com®.
The condo market remains competitive as buyer demand remains high.
“The condo market has bounced back,” says Chance Glover, a Redfin manager in Boston. “People are no longer afraid to live downtown, close to the crowds—and 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.”
Inventory shortages abound throughout the housing market, including among condos. The supply of condos for sale on the market was near a record low in February, according to a report from Redfin on the condo market. About 41% of condos sold above asking price in February, another sign of the heated competition, Redfin reports.
Nashville, Tenn., has posted the highest price growth for condos nationwide, according to Redfin’s report. The median sales price in Nashville has jumped 49.3% over the past year, reaching $426,000. Charleston, S.C., followed with a 41% growth to $319,000 and Las Vegas at a 33% annual increase to $237,000.