Condo prices are dropping because homeowners have gotten fed up with high HOA and insurance fees, according to Redfin. The average cost of a condo in the U.S. is $354,100, Redfin data shows.
“Inventory has increased slightly, and days on market have ticked up, giving buyers more leverage than they’ve had in recent years,” Bild told Fortune. “This window could represent an opportunity for younger buyers who’ve been sidelined by pricing wars or rising interest rates.”
Buying a condo can be a good place for first-time homeowners to start because of their typically lower price tag than single-family homes—and less maintenance to boot.
“This could still be a good entry point for Gen Z or millennial buyers who understand the risks and are willing to do their homework,” he added.
The homework is understanding the associated HOA and insurance costs with owning a condo. This is mostly a problem with older or underfunded buildings, he said.
“I’ve helped buyers take advantage of these price dips, but I always tell them to dig deep into the HOA’s financials, look out for special assessments, and understand what they’re signing up for,” Johnson said. “Some of these condos are still great deals, but only if you know what you’re getting into.”
“Buyers are looking at not just the purchase price, but the total monthly outlay—and if those numbers don’t work, they’re walking away or negotiating more aggressively,” Bild said. “It’s a numbers game, and buildings with transparency, maintenance history, and financial health are coming out ahead.”
