Condo prices are falling across major Florida and Texas metros as high inventory levels and buyer hesitancy create a stagnant market, according to a new report from Redfin. Rising HOA fees and soaring insurance costs are making condos a tough sell, leading to significant drops in sales and prices.
In Tampa, the number of condos for sale surged 57.2% in July compared to the previous year, with pending sales plummeting 18.9% and median sale prices falling by 4.9%. Houston saw similar trends, with condo inventory up 35.9%, pending sales down 35.3%, and prices dropping by 6.5%. The downturn in these markets is compounded by a new construction boom and declining interest from real estate investors.
Nationwide, condo inventory is rising, and pending sales are falling, although prices are still increasing slightly. The downturn in Florida and Texas is dragging down the broader national market, with Sun Belt metros like Phoenix and Nashville experiencing similar challenges.