Condos are getting harder to sell in the spring housing market

More condos are selling below the original list price

By Mark Huffman of ConsumerAffairs

April 9, 2025

Key takeaways

• Widespread price reductions and surging inventory
  A record 68.4% of condos sold below asking price in February 2025, signaling a significant cooldown in the condo market. Florida is at the forefront of this shift.

• Rising costs undermine condo affordability
  Condos, traditionally seen as affordable, are becoming less attractive due to escalating HOA fees, insurance costs, and new safety regulations. The average condo sold for 4.6% below list price, and in some markets.

• Market disparities present buyer opportunities
  While sellers face challenges, buyers may benefit from the market downturn through price negotiations and concessions. Cities like Denver, Virginia Beach, and Charlotte have also seen steep increases in price reductions. Experts advise sellers to price condos competitively to avoid prolonged listings, as overpricing could deter buyers in a cooling market.

Could condos be the U.S. housing markets canary in the coal mine? A record 68.4% of condos sold for less than their original asking price in February 2025, up from 63.3% a year ago, according to a new report from real estate broker Redfin. This marks the highest share in the month of February in five years, reflecting broader shifts in buyer behavior and market conditions.

While all housing segments are seeing more properties sell below their list price, condos stand out. Townhouses followed with 59.4% selling below list price, up from 54.7%, and single-family homes rose to 64.2% from 61.2%, reaching a two-year high. Still, the increase in condo price reductions was the most pronounced.

Back to normal

Across all property types, the share of homes selling below asking is returning to pre-pandemic levels, which is good news for buyers. However, condos are leading that trend, just 3.5 percentage points away from February 2019 benchmarks, compared to a 4.1-point gap for single-family homes and 4.9 points for townhouses.

Nowhere is the shift more dramatic than in Florida, where economic pressures are accelerating the condo markets downturn. In the Orlando metro area, a staggering 84.8% of condos sold below their original asking price in February. The median sale price was nearly 10% below list, with a sale-to-list ratio of 90.8%, down from 94.1% the previous year.

Tim Harper, a Redfin Premier agent based in Orlando, said the Florida condo market is in uncharted territory.

Were seeing a massive influx of condo inventory because a lot of senior citizens on fixed incomes can no longer afford their monthly payments, and a lot of other condo owners just want to move because theyre tired of dealing with rising HOA fees and special assessments, Harper said.

Condo listings in Orlando surged 30.7% year-over-year, more than double the 15.3% national increase, as homeowners attempt to exit a softening market.

Higher costs

HOA fees, insurance premiums, and new safety regulations have chipped away at condos’ reputation as a budget-friendly entry point into homeownership. The average condo sold for 4.6% less than its list price in February, down from 3.6% a year ago and nearly 0% three years prior.

In some cases, buyers are turning instead to small single-family homes, which often offer more autonomy without the burden of HOA fees.

Beyond Florida, other cities are also experiencing sharp downturns in condo pricing. Denver saw the largest jump in condos selling below list price, increasing 17.2 percentage points year-over-year to 77.2%. Virginia Beach and Charlotte followed with 16.2- and 15.3-point increases, respectively.

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