Rent Real EstateCondo Trends: Nationally, Prices Hold 1Q Despite Housing Downturn
The first quarter national report is finally out (in September) for existing condominium and cooperative sales from the National Association of Realtors and it seems condos have actually been quite resilient in an era of dropping prices and failing inventories. The NAR reports stable prices overall across the U.S., dropping an average of only 2.8 percent for the first quarter 2008, compared to the same time a year ago.
Despite dropping sales volume of 25 percent compared to March 2007, the sales prices in March 2008 averaged $219,400. The Northeast and Midwest regions have actually seen price increases at 4.3 and 3.2 percent respectively. Condo prices in the South have dipped 4.9 percent compared to the same period last year, while the prices in the West have dropped more than 18 percent in a year.
Month to month prices have demonstrated an upswing in prices, however, across the country.
In various cities around the country, this stability in pricing has proven out – In the 2nd Quarter Median Sales Price Report from NAR, the condominiums have held pricing in city after city:
Chicago: +5%
Dallas/Ft. Worth: +2.8%
Norwich/New London, CT: +6.4%
Portland, Maine: +2.5%
Rochester, NY: +4.8%
Even in large cities, while the news has focused on price drops and sales volume in markets such as Florida and California, many areas have experienced stable prices and only small dips year over year.
Washington, D.C.: -2.4%
Phoenix: -5.1%
Boston: -3.9%
Out of the 60 metropolitan areas reported by NAR, nearly 30 percent have had price increases, while another 30 percent have experienced price drops under 6 percent over the same time period last year.