In a bit of a surprise, given the continued high price of single-family homes, condo sales dropped 12% nationwide in July while homes were only down 1%. And the trend is essentially across the entire country – except the Northeast where sales were flat – 11% down in the West, 15% in the South, 17% in the Midwest.
As to why this is happening, analysts cited several possible reasons:
- While prices for condos are generally lower, they are also smaller which means the price-per-sqaure-foot is considerably higher – 35.8% higher in July.
- Homeowner association fees continue to rise, current $650 nationwide.