- Key Market Declines
May 2025 saw the median U.S. condo sale price fall to $354,100, down 2.2% year-over-year—the second-largest annual drop since 2012. The steepest recorded was April 2023, when prices plunged 2.9%.
- Supply & Sales Weakness
Sales dropped nearly 12% year-over-year in May, a rate over three times worse than declines in single-family home transactions.
Condo listings soared to a 10-year high, and the average days on market stretched to 46 days—longest for May since 2015—compared to 38 days for single-family homes.
- Market Imbalance: Buyers Retreat
Redfin reports there are now 80% more condo sellers than buyers, highlighting a major mismatch in supply and demand. This imbalance is being accelerated by rising costs—insurance, HOA fees, and special assessments—especially in states like Florida and Texas.
- Regional Disparities
Hardest-hit markets:
Deltona, FL: –32.2%
Crestview, FL: –32%
Houston: –23%
Oakland: –20.3%
Tampa: –19%
These figures indicate widespread decline across Florida and Texas.
Bright spots in the Northeast:
New Brunswick, NJ: +14.9%
Montgomery County, PA: +14.1%
Pittsburgh: +14.1%
San Francisco: +8.8%
Ocean City, NJ: +8.2%
Tight supply conditions in these regions are helping sustain or grow condo values.
- Broader Market Context
Nationwide condo prices dropped 1.4% in June, the steepest decline since 2012, as per Intercontinental Exchange data. Condo inventory levels are hitting 10-year highs, driven by mortgage rate pressure and unaffordable monthly costs.
Drivers of the downturn:
Soaring HOA dues and insurance premiums, especially in hurricane-prone Florida following the Surfside building collapse.
Tighter financing: Many condo associations restrict FHA loans, limiting buyer pools.
Investor pullback: Severe drops in investor interest—particularly in Florida—are exacerbating the decline.