On the watch are reports from Redfin that condominium (condo) prices rose to a record-high $319,000 in February as buyers look for more affordable homes while single-family home prices remain lofty. That’s up nearly 14.6% from a year ago and up 22.7% from February 2020. Single-family home prices jumped to a record $406,000 last month, up 15.9% year over year and up 34.9% from February 2020. A Redfin spokesperson said, “Rising prices are pushing single-family homes out of reach for a lot of buyers, so condos are affordable in comparison.”
Should this pattern continue, then even affordable housing may be out of reach for some buyers.
With housing prices at or near record highs, Americans are looking to relocate to more affordable areas of the country in record numbers. Almost one-third of Redfin.com users were looking to relocate in January and February, up from 31.5% in Q1 2021 and up 26% from Q1 2019, before the shutdowns began. Homebuyers’ first destination of choice was Miami, followed by Phoenix, and Tampa, Florida. The emergence of remote working is a key factor in the more affordable movement around the nation.
Bottom line: With home prices on the rise as well as borrowing costs, now is still a good time to purchase a home or a condo and live the American Dream of owning a home.
Source: Mortgage Market Guide
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