By DON FENLEY

Condo sales are a minor part of the local housing market, but things are changing. During August, the condo/townhome market’s sales and prices outperformed the single-family market.

August isn’t a fluke.

The condo/townhome market has slowly increased its market share driven by the lack of choice, competition, and affordability in the single-family market. Given current conditions, that isn’t likely to change soon.

Townhomes and condos are gaining market share due to their increasing popularity among buyers. They offer a balance between the privacy of a single-family home and the amenities of apartment living. And they typically have lower maintenance costs.

The numbers tell the story best.

Here’s how last month’s condo/townhome market in the seven primary counties NETAR monitors compared to the single-family market.

Single-family sales were down 11.5% from last year. Condo/townhome sales were up 11.1%.

The single-family median price ($259,650) was up 6.5% from last year. The condo/townhome median price ($207,500) was up 25.8%.

Single family existing homes were on the market for 49 days last month while condo/townhome listings spent 44 days on the market before closing. The fewer days a listing is on the market, is a prime demand indicator.

The condo/townhome market had 1.6 months of inventory (114 listings) last month. The single-family market had 2.4 months of inventory with 1,416 listings.

New construction properties offered a similarity between the two markets. Both had market shares approaching 50%. That number does not include the build-to-rent townhome properties or construction.

New construction listings in the condo/townhome market were a comparison to all listings, while the existing single-family share was new construction listings compared to the move-up existing homes market.

Categories: REAL ESTATE