Condo Prices Already Dropped By Up To 33% In 24 Bigger Markets

Authored by Wolf Richter via Wolf Street,

The price drops are getting relentlessly steeper: In 24 bigger markets, prices of mid-tier condos through April have dropped by 15% to 33% from their respective peaks between 2021 and 2024.

Each of the markets is shown in a chart below: 24 mindboggling charts, depicting breath-taking price explosions, especially from mid-2020 to mid-2022, exceeding 50%, 60%, or even 70% in just two years in some cities. In the 10 years to the peak, prices had soared by 180% to 350% in these markets. And these bubbles have started to deflate.

In 2 of the cities, prices of mid-tier condos dropped by over 30%.In five other markets, prices dropped by 20% to 28%. In another 3 cities, prices dropped by 19%. These are starting to be substantial declines over a multiyear period.

In several of these markets, condo prices have now dropped below their peaks of Housing Bubble 1 in 2006/2007 and are back where they'd been 20 years ago. In a few other markets, prices have dropped close to their peaks of Housing Bubble 1. Those charts are marked with a red line.

There are also many smaller markets where condo prices have dropped just as much or more, but that are not included here because they're too small.

Most of the markets here are "cities." Butthe line-up also includes three counties where the cities, though household names, are too small to be included individually. And it includes one metropolitan statistical area, the Lakeland-Winter Haven MSA in Florida, for the same reason.

In some densely populated cities, condos and co-ops make up a big part or the majority of home sales. In most other markets, condos are a much smaller portion of home sales.

In many cities, condo prices have dropped by 14% or less, and they didn't make the 15% cutoff here. Below is a sample list of 41 bigger cities where prices have dropped by 7% to 14% from their respective peaks.

Methodology and data:These prices here are seasonally adjusted three-month averages of "mid-tier" condos and co-ops from the Zillow Home Value Index (ZHVI),which is based on millions of data points in Zillow's "Database of All Homes," including from public records (tax data), MLS, brokerages, local Realtor Associations, real-estate agents, and households across the US. It includes pricing data for off-market deals and for-sale-by-owner deals. These are not median prices.

Source: ZeroHedge News