While single-family homes flew off the market, Los Angeles condo sales took another hit in June, declining 41.5 percent year-over-year.
New data from Redfin indicates there were 499 condominiums sold last month on a seasonally adjusted basis, an 18.2 percent bump over May’s total. The median-priced unit sold for $468,588 — 3 percent less than the same time last year, but a 0.5 percent gain compared to the previous month.
The number of seasonally-adjusted active condo listings ticked up 8.9 percent from May to June, amounting to 3,656. That count is still down 9.7 percent when weighed against June 2019 data. New listings also improved, rising 21.4 percent month-over-month to 1,105. Somewhat surprisingly, fresh listings were up 2.5 percent compared to the same period last year.
“The pandemic has fundamentally changed what a lot of buyers are looking for in a home,” said Redfin economist Taylor Marr.
Proximity to the workplace, state-of-the-art amenities and a lock-and-leave lifestyle formerly attracted buyers to the condo market, but with many of those factors out of play, suburban single-family homes have fallen into favor.
That being said, condos remain an enticing option for first-time buyers on a budget. The median price of a single-family home in Los Angeles County surged 11.6 percent from May to June to $610,260, according to the California Association Of Realtors’ (CAR) latest resale housing report — not exactly an attainable price point for those struggling to scrape together a downpayment.
“Condos tend to be more affordable than single-family homes, especially now with historically low mortgage rates and the fact that condo prices are down from last year while they’re up for single-family homes,” explained Marr.
“Those factors are motivating some buyers to jump back into the condo market, particularly those who have found that purchasing a condo is just as affordable as renting an apartment.”
Nationwide, condo prices fell 1.4 percent in June to a median of $252,000. When pitted against the same month one year ago, sales were down 31.3 percent on a seasonally adjusted basis. Still, it was a slight improvement over May when condo sales nosedived 53.5 percent year-over-year.
Condos might not offer sprawling backyards or secluded home offices, but they remain sensible starter homes for first-time buyers and low-maintenance alternatives for empty-nesters in the pricy Los Angeles market.