The condo market is heating back up!
CONDO PRICES climb
During COVID, the demand for condos declined by 48% as city dwellers made a run for less densely populated areas. Many companies implemented remote work, and people wanted more space to work from home while making every effort to steer clear of the virus.
As we return to the more normalcy of everyday life, the high demand for condos has reappeared, with the national average condominium selling for $319,000. According to Redfin, February 2022 saw the average condo price soar 22.7% from pre-pandemic prices and 14.6% from 2021. Homebuyers are competing for condos almost as fiercely as in the single-family market.
Washington DC Area Condo Sales Increase
This is a perfect time for people in the D.C. area who are considering selling their condos. The D.C. metro area has seen a significant increase in condominium sales recently. In January and February 2022, sales of condos increased by 33% in Washington D.C., 11.5% in Arlington, and 21% in Alexandria.
Why is the Demand for Condos Returning?
The demand for condos is returning for three main reasons.
Heading Back to the City
People living in tight quarters on top of their neighbors during the pandemic wanted space. Many employees didn’t have to report to the office, and it seemed a great time to escape the crowded cities and make a run for the suburbs. Many who moved from the city have returned to enjoy the amenities only city life offers and report for in-person work.
COVID-19 Numbers Decline
Two years after the U.S. went into lockdown from COVID-19, we see a significant decline in reported cases, and people are learning to live a more normal life once again, no longer living in fear.
Single-Family Home Prices Continue to Surge
The surging price of single-family homes on the market and low inventory have aided in increased condominium sales. The fourth quarter of 2021 continued to see price increases. According to the National Association of Realtors (NAR), the fourth quarter saw 67% of metro areas with a double-digit rise in single-family home sales prices.
Condos are Selling Fast
Redfin reports that condominiums are selling faster than last year. In February of 2021, an average condo went under contract within 43 days. February 2022 saw condos under contract in 30 days - 13 days faster than a year ago. The recent Redfin report details a serious condo inventory shortage (down 28% year-over-year in February) with a more considerable inventory decline than single-family homes, which experienced a 14% year-over-year decline.
Forecast: The Condo Market 2022
With a shrinking supply of inventory and condos quickly becoming as in demand as single-family homes, 2022 is on its way to a hot condominium market. If you are considering selling or buying a Washington D.C. or Northern Virginia condo, contact Glass House and find out how we can assist you.
The Glass House Real Estate Team
We are passionate about empowering home buyers and sellers. Our team brings a wealth of knowledge and experience. We will help you seamlessly navigate the home buying or selling process stress-free.