According to Redfin.com and a recent MReport, working from home, the desire for privacy, and all-time-low mortgage rates make single-family homes more desirable during the COVID-19 pandemic. However, experts are saying that condos could make a comeback if single family homes prices continue to increase. Single family home prices rose from 12% to $343,000 year-over-year.. The rises in condo prices jumped 5.4% to a median of $266,000. This is the largest gap between condo and house prices since 2014. Redfin Lead Economist Taylor Marr stated, “Home prices have been growing across all property types, as record-low mortgage rates have suddenly equipped Americans with more buying power. But condos have experienced relatively modest price growth because the coronavirus pandemic has motivated many homebuyers to instead bid on single-family homes, which typically offer more space and privacy. But if prices of single-family homes continue to surge to unsustainable levels, condos may make a comeback, as they could become the only type of home that buyers in some areas can afford while also avoiding intense bidding wars.”
WHAT ELSE DID THEY FIND?
Interest in single-family homes has already started to decline. About 34% of saved searches by Redfin users filtered for single-family homes in September. This is roughly 3% down from July. This indicates that living in a single-family home is becoming less of a priority. Although single-family home sales are still higher than condo sales, that might be due to inventory issues. Marr stated that there might be stronger home sales in the single-family market, but the supply shortage is causing problems.
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