Although the pace of sales slowed markedly in November, with transactions for condominiums and co-ops slipping 2.6% from the previous month to an annualized rate of 380,000, price tags on these units have stubbornly refused to follow suit.
It seems the laws of supply and demand are currently on a confusing hiatus, as national condo prices actually managed a solid 4.6% climb year-over-year according to 2025 data. Even with the median list price hitting $345,000 in June—hovering near 2022 peaks—the market is undeniably tricky for average buyers who are constantly battling affordability concerns and elevated interest rates.
While sticker prices hold the line nationally, the machinery underneath is clearly sputtering because listings are growing faster than sales.
The inventory of unsold condos has surged nearly 80% since mid-2022, pushing the absorption rate above 15 months in 2025, which is a massive leap from the swift 4-to-6-month pace seen previously.
Consequently, units are collecting dust rather than offers, and the average time to contract signing has tripled to 90 days. Specific coastal data reinforces this sluggishness, as the average Days on Market has hit a five-year high exceeding 130 days in 2025.
New condo sales specifically dropped 8% year-over-year, moving only 42,000 units.
It is a stressful waiting game that sellers are losing, evidenced by the fact that nearly 43% of Florida condo sellers reduced prices in June 2025.
In fact, nearly 70% of condos sold underneath their list price in Q1 2025, marking a five-year high.
Regional cracks are definitely showing, proving that real estate is still all about location.
Major hubs like Los Angeles and Miami posted annual price declines of 1.2% and 1.9% respectively, as rising HOA fees and insurance premiums scare off owners.
Additionally, investor purchases dipped 3%, suggesting the smart money is looking elsewhere.
Even though national averages suggest growth, condo appreciation is lagging behind single-family homes in 97 of the 100 largest U.S. markets.
The luxury condo sector shows more resilience than the broader market, with recovery trends reminiscent of levels seen before cooling measures implementation.
With purchase originations plummeting from $148 billion in 2021 to just $83 billion in 2024, the sector faces serious headwinds. However, credit quality remains resilient, evidenced by the fact that condo loan delinquency rates are currently 1.5%, which is notably lower than the 2.8% rate for detached homes.
Until rates cool or rising supply changes the math, this strange standoff between falling sales and sticky prices remains a frustrating puzzle for everyone involved.
