Puget Sound condo market swings in buyers’ favor

Condo buyers are gaining the upper hand locally and across the country.

A new report from Seattle-based Redfin found there were 123% more condo sellers than buyers nationwide in September, the largest gap since the company began tracking the data in 2013. The report estimates there were more than two sellers for every buyer across the country.

The Seattle metro area showed a similar trend. Redfin counted an estimated 2,284 condo sellers and 809 buyers in September, making it one of many major markets where buyers now have more leverage than sellers.

“Buyers have more options and a better chance of finding a place they like,” Asad Khan, a senior economist at Redfin, said. “Although condo prices and HOA fees remain relatively high, buyers have more room to negotiate price cuts, and condos are still generally more affordable than single-family homes.”

The changing market marks a sharp reversal from the pandemic-era housing boom, when buyers routinely competed over limited inventory. Nationally, the number of condo buyers has fallen to its lowest level in at least 13 years, while the number of sellers has continued to rise.

Rising condo costs discourage buyers but create room to negotiate

According to the report, rising mortgage rates, homeowners association fees, insurance premiums, and special assessments have made condo ownership more expensive, discouraging some potential buyers.

The report suggests the current market may create opportunities for shoppers who can afford to buy.

“For renters who have saved for a down payment and are ready to build equity, these buyer-friendly conditions are an opportunity,” Khan said.

Seattle is far from the most buyer-friendly condo market. Redfin found San Antonio had more than five condo sellers for every buyer in September, the largest imbalance in the country. Houston and Miami also ranked near the top.

Meanwhile, only three major metro areas posted more buyers than sellers: Nassau County, New York; Newark, New Jersey; and Milwaukee, Wisconsin.

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