It’s no surprise that active homebuyers in today’s market are facing an uphill battle between a lock-in effect, rising interest rates, and just a lack of housing available to purchase across the nation. In major housing markets, homebuyers are faced with a grim reality: there are more homebuyers than homes available. This is why residents in the District of Columbia are turning to condos as mortgage rates inch back up to record-high numbers, Axios recently reported.
Understanding the Condo Increase in Washington
Active homebuyers who would normally be looking at single-family homes are now directing their attention to condos. Many are finding it as an alternative solution to the current housing market, and they are scooping up condos quickly.
June data from Zillow shows that the median sales price for a condo in D.C. was $260,606.03 cheaper than a single-family home, according to Axios.
However, even in major cities, condos are still relatively expensive when compared to single-family homes, so active homebuyers are comparing locations with prices, and many buyers are turning to the suburbs to get the most for their money.
“In D.C., median condo sales prices were down 6.7% from May to June — and down 8.5% year-over-year. Meanwhile, in Montgomery County, they shot up 9.7% in one month.” Axios also concluded that “Condo prices are coming down in D.C. because there’s only a small pool of people who can afford to buy right now.”
Condos in Washington, D.C. are also decreasing because buyers aren’t satisfied with the flashy amenities the current condos offer with their current pricing.
“For example, a brand-new luxury building with outdoor space, an in-unit washer/dryer and garage parking might have the same $1,500 monthly condo fee as a no-frills building that requires a lot of maintenance,” DMV real estate agent Avi Adler told Axios.
As the current housing market continues to face challenges, condos are becoming increasingly popular among active homebuyers, and this trend is likely to continue in the foreseeable future. Overall, the condo market is proving to be a bright spot in an otherwise uncertain housing landscape.
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