Condo market outperforming single-family sales, prices
Condo sales are a minor part of the local housing market, but things are changing. During August, the condo/townhome market’s sales and prices outperformed the single-family market.
August isn’t a fluke.
The condo/townhome market has slowly increased its market share driven by the lack of choice, competition, and affordability in the single-family market. Given current conditions, that isn’t likely to change soon.
Townhomes and condos are gaining market share due to their increasing popularity among buyers. They offer a balance between the privacy of a single-family home and the amenities of apartment living. And they typically have lower maintenance costs.
The numbers tell the story best.
Here’s how last month’s condo/townhome market in the seven primary counties NETAR monitors compared to the single-family market.
Single-family sales were down 11.5% from last year. Condo/townhome sales were up 11.1%.
The single-family median price ($259,650) was up 6.5% from last year. The condo/townhome median price ($207,500) was up 25.8%.
Single family existing homes were on the market for 49 days last month while condo/townhome listings spent 44 days on the market before closing. The fewer days a listing is on the market, is a prime demand indicator.
The condo/townhome market had 1.6 months of inventory (114 listings) last month. The single-family market had 2.4 months of inventory with 1,416 listings.
New construction properties offered a similarity between the two markets. Both had market shares approaching 50%. That number does not include the build-to-rent townhome properties or construction.
New construction listings in the condo/townhome market were a comparison to all listings, while the existing single-family share was new construction listings compared to the move-up existing homes market.
NETAR is the voice for real estate in Northeast Tennessee. It is the largest trade association in the Northeast Tennessee, Southwest Virginia region, representing over 1,800+ members and 100+ business partners involved in all aspects of the residential and commercial real estate industries. Weekly market reports and information for both consumers and members are available on the NETAR website at https://netar.us