Condo sale prices lag behind SFRs in most of U.S.
Although the U.S. housing market is booming this year, the condo market isn’t gaining at quite the same pace as its SFR counterpart.
According to a new report from Redfin, the typical single-family home sold for an average of 17.3%—or $58,000—more than the typical condo. That’s up from 15.4% last year and represents the largest surplus since at least 2013, when Redfin began recording this data.
The median sale price of single-family homes increased 15.5% year over year in October, as compared to the condo market’s 9.9% growth. Condos are taking longer to sell, too, with the typical condo spending 36 days on the market last month, as opposed to the 27 days the typical single-family home is on the market.
Fewer condos sell above asking price. Just under 23% of condos sold over their listing price, while over 36% of single-family homes fetched above asking.
It’s not all bleak for condos, though. Condo purchases have been catching up. In October, condo sales rose 22.7% from a year earlier on a seasonally-adjusted basis, following a 50% plunge in the spring.
Although the pandemic’s work from home arrangements have led many homeowners to flee dense cities for more space and privacy, which often means buying single-family homes, that movement has actually opened up home buying opportunities for millennials who don’t mind the space and privacy issue.
“Condos sales are rebounding because buyers are finding great deals,” said Redfin Chief Economist Daryl Fairweather. “Families are fleeing cities in search of more space in the suburbs, which has presented an opportunity for millennials who are looking to become homeowners but don’t need extra bedrooms or a backyard.”
Florida and California top the list when it comes to price premiums for single family homes. —Of the 86 metros in Redfin’s analysis, Fort Lauderdale ranks number one with single-family homes having sold for an average of 38.3% more than condos in October. Bakersfield, CA, was second with a 35.8% premium, followed by Lakeland, FL at 34.3%, and Oklahoma City, OK and Tucson, AZ, both at 30.3%.
According to a local Redfin real estate agent, single-family homes in the Seattle area are selling for a 17.9% premium over condos, which are taking several months to sell rather than the usual couple of weeks. He added that condos now bought by people who couldn’t afford one a couple of years ago because of their high prices. “I recently sold a condo that was within walking distance of Amazon’s headquarters for $510,000. Condos in that building normally go for $550,000 and up,” he said.
There were three metro areas where single-family homes sold for less than condos in October. In San Antonio, single-family homes were going for 12.9% less than condos. In Omaha, NE they went for 6.2% less, and in Salt Lake City, single family homes sold for 1.7% less.
Guaranteed Rate donates over $3M to children’s cause
Hats off to Guaranteed Rate, whose employee-driven fundraising effort has resulted in a donation of over $3.3 million to Baby2Baby, a non-profit organization that provides basic necessities to children living in poverty.
The company raised funds through Guaranteed Love, its new initiative. It took just 10 days for employees, families and friends to raise over $1.1 million. With a two-for-one-dollar company match, the donation came to a total of $3,381,943 to Baby2Baby.
In the United States, one in three families struggles to provide necessities, such as diapers, to their children, according to a statement by the company.
Guaranteed Rate’s donation will help provide essential items to over 150,000 children nationwide this holiday season, including approximately 4 million diapers, 80,000 cans of formula, 80,000 packs of wipes, 40,000 warm coats, 40,000 blankets, 12,000 pairs of pajamas and 12,000 toys.
Fannie Mae recognized and awarded for commitment to inclusion
Congrats to Fannie Mae, which was named one of the “Best-of-the-Best Corporations for Inclusion” by the National Business Inclusion Consortium (NBIC), a coalition formed by the National LGBT Chamber of Commerce (NGLCC).
This is the fifth year for the annual selection, which features U.S. corporations that are committed to diversity and inclusion across all communities. Companies were evaluated based on internal, external, and supplier diversity efforts.
“At Fannie Mae, we are proud to foster a diverse workforce that reflects the communities we serve,” said Jeffery R. Hayward, Executive Vice President and Chief Administrative Officer, Fannie Mae. “This recognition by NBIC is a great honor and we will continue our work to drive diversity and inclusion in both the workplace and the marketplace.”
Fannie Mae demonstrates its commitment to diversity and inclusion by:
- Attracting, engaging, and retaining a diverse workforce.
- Attracting, developing, and promoting opportunities for diverse suppliers, vendors, and business partners.
- Fostering a diverse and inclusive workplace.
“The Best-of-the-Best designation honors corporations for their commitment to America’s diverse employees and business owners, which includes LGBT people, people of color, women, and people with disabilities,” said NGLCC Co-Founder and President Justin Nelson. “This designation is highly competitive and is bestowed only to corporations that we see constantly striving to strengthen and celebrate diversity. These corporations being honored are true leaders in ongoing global commitments to create a better future for all diverse communities in business.”