Condos Becoming an Alternative Trend for Homebuyers
By: DS News
According to a new Point2 study, when the pandemic forced many Americans to settle into remote work, single family homes — preferably with a backyard — became a fast-growing trend for homebuyers. Consequently, homebuyers went into a real house hunting frenzy, jumpstarting a period of bitter bidding wars and rapidly escalating asking prices.
Now, single family home prices that shot into the stratosphere are currently undergoing a dramatic price correction. But the same is not true for condos. After demand for space drove house prices to historic highs, making them totally unattainable, homebuyers started shifting their attention toward the more affordable option — condos.
As a result, the trend that is becoming increasingly evident is that house prices are falling almost twice as fast as condo prices. In fact, the evolution of single family home and condo prices in the 100 largest U.S. cities shows that increasing demand for condos makes prices in this segment hold up much better than single family home prices.