A new report from Redfin revealed that condo sales rose 22.7% in October from a year earlier on a seasonally adjusted basis, after seeing a 50% drop in the spring. Single-family home sales grew 23.3% last month.
“Condo sales are rebounding because buyers are finding great deals,” said Redfin’s 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.”
The average single-family home in the U.S. sold for an average of 17.3%, or $58,000 more than the typical condo, Redfin said. This is up from last year’s 15.4% and is the largest premium since at least 2013, when Redfin began recording this data.
In October, the median sale price of single-family homes rose 15.5% year over year, while condo sale prices rose 9.9%. Redfin also said that condos are taking longer to sell, as the average days on the market was 36. Single-family homes were on the market for 27 days.
Bidding wars on single-family homes aren’t unusual these days – 36.6% of single-family homes sold more than their listing price in October. Meanwhile, only 22.8% of condos sold over listing price.
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In the metro area of Fort Lauderdale, Florida, single-family homes sold for an average of 38.3% more than condos did in October, the largest premium out of the metros in Redfin’s analysis.
In addition, Bakersfield, California had a 35.8% premium; Lakeland, Florida had a 34.3% premium; and there was a 30.3% premium in both Tucson, Arizona and Oklahoma City.
In San Antonio, single-family homes sold at a lower price than condos did, by 12.9%. In Omaha, Nebraska, single-family homes sold for 6.2% less than condos did, while in Salt Lake City single-family homes sold for 1.7% less.