Younger buyers have been increasingly priced out of the housing market due to rising mortgage rates and skyrocketing home prices. However, falling condo prices could offer a potential entry point. While home prices have surged 51% since 2020, condo prices have decreased by 2% year-over-year. This decline is largely attributed to homeowners' dissatisfaction with high HOA and insurance costs. Increased inventory and longer market days are giving buyers more negotiating power, presenting an opportunity for Gen Zers and millennials to enter the market amidst unfavorable conditions.
Condo prices have dropped 2% year-over-year in May, marking the second-largest decline since Redfin began tracking the data in 2012 due to rising HOA fees and insurance rates.
The average cost of a condo in the U.S. is $354,100, contrasting sharply with a market where home prices are currently 51% higher than in 2020.
A slight increase in inventory and longer days on market are giving buyers more leverage, creating a window of opportunity for younger buyers who have struggled in recent years.
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