July 5, 2025

U.S. Condo Market Faces Significant Downturn

News Summary

The U.S. condo market is facing a notable downturn, with median sale prices declining by 2.2% year-over-year. Sales have dipped nearly 12%, revealing a significant imbalance of 80% more sellers than buyers. In Florida, cities like Deltona, Crestview, and Tampa have witnessed the most significant price drops, while some Northeastern markets are seeing increases. The impact of rising HOA fees and new legislation is adding pressure on condo owners to sell. Despite these challenges, buyers may find opportunities in the growing inventory of listings.

Miami, FL – The U.S. condo market is experiencing a significant downturn, as median sale prices dropped by 2.2% year-over-year to $354,100 in May 2025, according to a new report from Redfin. This marks the second-largest decline in condo prices since 2012, following a larger drop of 2.9% in April 2023. The current condo market has approximately 80% more sellers than buyers, an imbalance prompting many owners to sell their properties amid rising homeowner association (HOA) fees and insurance costs, as well as high special assessments.

Sales also fell sharply, with nearly a 12% dip in condo transactions compared to the same month last year. In contrast, single-family home sales saw a milder decline of only 3.7%. Listings for condos are at their highest level in a decade, suggesting a surplus of inventory that could benefit prospective buyers. The typical condo in the market took about 46 days to secure a contract in May, indicating a slower sales pace compared to single-family homes, which averaged just 38 days.

The fluctuations in the condo market are particularly pronounced in Florida. Notably, Deltona recorded the most significant median sale price drop at 32.2%. Other notable declines were observed in Crestview, Florida (-32%), Houston (-23%), Oakland, California (-20.3%), and Tampa, Florida (-19%). Cities like Dallas (-33.3%), Palm Bay, FL (-32.8%), and Phoenix (-32.7%) also felt substantial sales declines. In total, Florida accounts for seven out of the ten metropolitan areas with the largest year-over-year declines in condo sales.

Conversely, some Midwestern and Northeastern markets are witnessing a rise in condo prices. New Brunswick, New Jersey, reported a 14.9% increase, followed closely by Pittsburgh at 14.1%. Other cities experiencing growth include Indianapolis (27%), Portland, Maine (19.2%), and Charleston, South Carolina (11.5%).

Despite the challenges in the condo market, the single-family home market appears more stable, with a modest median sale price increase of 0.5% to $462,206. However, data indicates that nearly 1 in 10 for-sale condos risks selling at a loss, which is over double the rate for single-family homes. For example, in West Palm Beach, condos sold were on average listed for 107 days, with sales prices falling about 7% below asking prices.

Recent changes in legislation following the collapse of the Champlain Towers South condo building in Surfside, FL, have led to new mandates requiring structural inspections. These moves have further exacerbated the rise in HOA fees and special assessments that are pushing condo owners to sell.

Miami-Dade County presents a mixed picture in the condo market. Despite 14 consecutive years of condo price appreciation, with a median price holding steady at $425,000, statewide prices have decreased by 6.1% from the previous year. Condo sales in the Miami area dropped by over 20% year-over-year, especially affecting affordable inventory, though there was a notable jump of 38% in sales for condos priced between $100,000 to $150,000.

With the current dynamics of the condo market, buyers may find opportunities amid decreasing prices and a growing number of listings. However, sellers face challenges with rising costs and an oversaturated market, particularly in regions like Florida where the impact of increasing HOA fees has led many to list their condos for sale.

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Additional Resources

Author: STAFF HERE TAMPA WRITER

The TAMPA STAFF WRITER represents the experienced team at HERETampa.com, your go-to source for actionable local news and information in Tampa, Hillsborough County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Gasparilla Pirate Festival, Florida State Fair, and Tampa Riverfest. Our coverage extends to key organizations like the Tampa Bay Chamber of Commerce and United Way Suncoast, plus leading businesses in healthcare, finance, and technology that power the local economy such as BayCare Health System, Grow Financial Federal Credit Union, and KnowBe4. As part of the broader HERE network, including HEREJacksonville.com, HEREOrlando.com, HERESTPetersburg.com, and HERETallahassee.com, we provide comprehensive, credible insights into Florida's dynamic landscape.

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