The US Condo Market Has Shifted
Condo buyers have the upper hand as a listing surplus has grown nationwide. The U.S. condo market is firmly in buyer territory. According to a new Redfin report, there were an estimated 72.3% more condo listings than buyers nationwide in August — roughly 109,000 more listings. That marks the fifth consecutive month with at least 70% more sellers than buyers, making spring and summer 2025 the strongest buyer’s market for condos since Redfin began tracking this data in 2013 (excluding the early-pandemic slowdown in April 2020
Redfin defines a “buyer’s market” as one where sellers outnumber buyers by at least 10%. In other words, more condos are available than buyers to absorb them — though that doesn’t necessarily mean condos are cheap.
Why Condo Buyers Are Scarce
Several factors are driving the imbalance between condo sellers and buyers:
1. Rising costs.
Even with prices dipping slightly, condos remain expensive. The typical condo sold for $350,000 in August, down just 1% from last year. Mortgage rates remain roughly double pre-pandemic levels, while HOA fees, insurance premiums, and special assessments continue to rise — stretching monthly budgets and discouraging buyers. Buyers are saying a hard no to many of the older buildings that have high fees, no in unit washers and dryers and unfriendly pet policies.
2. New regulations and condo complexity.
Owning a condo has become more complicated. States like Florida have implemented stricter inspection and reserve funding rules following the 2021 Surfside tragedy, while California now mandates costly balcony inspections. These changes, though necessary for safety, can push HOA fees higher and make condo ownership less appealing compared to single-family homes or townhouses. On the national level, Fannie Mae and Freddie Mac are taking a hard look at condo community reserve studies and eye-balling issues of deferred maintenance. A number of buildings have lost their eligibility for loans from Fannie Mae and Freddie Mac on the basis on inadequate insurance, deferred maintenance and underfunded reserves. Once a community loses their Fannie and Freddie eligibility, very few lenders will give a mortgage to a condo in that community. A seller then only has the option of renting or hoping for a cash or VA buyer (assuming the VA eligibility for the community is in place and up to date.)
3. Florida’s outsized impact.
Home to 1.5 million condos—about one-fifth of the nation’s total—Florida dominates the condo landscape. Five of the ten U.S. metros with the largest condo oversupply are in Florida, where new regulations, higher insurance costs, and climate risks are deterring buyers.
4. Risk of depreciation.
Condos have underperformed other property types. From spring 2022 to spring 2025, condo prices rose just 3%, lagging well behind inflation. About one in ten condos are now at risk of selling at a loss, according to Redfin.
5. Investor pullback.
Investor demand has cooled sharply as both long-term and short-term rental markets soften. Investor purchases of condos dropped 13% year over year in the second quarter—the steepest decline in two years.
Overall, the U.S. housing market had 35% more sellers than buyers in August. Condos represent the biggest imbalance, followed by townhouses (38%) and single-family homes (30%).
Some Condo Sellers Are Hitting Pause
While the gap remains wide, it’s starting to narrow. The 72% surplus in August—259,638 sellers versus 150,693 buyers—is down from an 81% peak in April. Some owners who don’t need to sell immediately are holding off rather than cutting prices or waiting months for offers.
In August, the typical U.S. condo sold for 2% below asking price and took an average of 58 days to go under contract — about two weeks longer than last year and the slowest August pace in over a decade.
A Window of Opportunity for Buyers
For those who can afford the upfront costs, now may be the best time in years to buy a condo. With more listings than buyers, shoppers can negotiate on price, request concessions, or take their time finding the right unit.
“With condo buyers in the driver’s seat and rents poised to rise as multifamily construction declines, it may be a good time to make the switch from renting to owning,” said Asad Khan, senior economist at Redfin. “Even though prices and HOA fees are still high, condos remain more affordable than single-family homes—and this kind of negotiating power might not last long.”
Before making an offer, buyers should research the building’s HOA and budget for all monthly costs: principal, interest, taxes, insurance, HOA fees, and potential special assessments. Doing this homework upfront can prevent surprises later — and help ensure your new condo is both comfortable and financially sustainable.
If you are thinking of buying a condo, let’s talk. As a Washington nearly native, I am very familiar with the condos in the DC metro area and will be happy to share with you which ones are best in meeting your wants and needs. Which buildings have in unit washers and dryers? Which communities have gyms and pools, front desks and parking garages? Which ones are pet friendly? Which buildings are on Fannie and Freddie’s do not lend list? If these features are important, I can help you narrow the list of buildings on which you should focus. Call me at 240-401-5577 or email me at lise@lisehowe.com!
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