According to a recent report by Movoto Real Estate, the price for condos increased in October when compared to the same time a year ago. This increase, caused by a lack inventory, is good news for sellers. Nevertheless, while the current market favors sellers, month-over-month data indicates that more condos are coming on the market, which will adversely affect list prices.
In the past year, the median list price per square foot index for a condo increased from $200 to $222, or 11.4 percent. During the same 12 month period, inventory remained almost flat at about 29,200 units.
Nevertheless, inventory levels have remained flat or increased on a month-over-month basis since January. If this trend continues, buyers will have more purchasing power, as there will be more units for them to choose from and decreased competition.
How this Report Is Made
In building this report, Movoto Real Estate looked at 35 geographically diverse cities in order to determine average inventory levels and price per square foot. In addition, we further break down this data on a month-over-month and year-over-year basis. The data used comes from each city’s Multiple Listing Service. This report only examines condos and townhomes, which is just one portion of residential real estate. Movoto’s State of the Real Estate Market report examines all residential properties.
Price Per Square Foot
Of the 35 cities we track, the median list price per square foot increased in 31 markets, or about 88.5 percent of the areas we follow. Conversely, the median list price per square foot for condos decreased in three cities, while it stayed the same in one.
During the past 12 months, the median price per square foot index for condos increased by $22. As stated above, in October 2012, condos were priced at $200 per square foot, and increased to $222 at the end of October this year.
Some cities, however, saw significant increases in the median list price per square foot. Here are the three cities that saw the greatest increase:
- Long Beach, CA: In the past year, the price per square foot for a condo in Long Beach increased by 35.7 percent, going from $255 in October 2012 to $346 at the end of last month. This is an increase of $91 per square foot.
- Phoenix, AZ: A condo in Phoenix costs $27 more per square foot today than a year ago. In October 2012, the price per square foot stood at $78. Since then, the price per square foot has jumped to $105 per square foot, or 34.6 percent.
- Sacramento, CA: The price per square foot for a condo in Sacramento increased by 30.2 percent in the past 12 months, rising from $86 to $112. This is an increase of $26 per square foot.
Of the cities that saw a decline in units, New Orleans, LA fared the worst. The price per square foot for a condo in The Big Easy dropped from $256 to $247 in the past 12 months, or by 3.5 percent.
On a month-over-month basis, the median list price per square foot for condos has increased steadily, with the exception of a single month in which prices remained the flat. During the past year, the price per square foot for condos in the cities we track increased by an average of $2.25 per square foot per month.
For perspective, the benchmark size of a condo across the cities we cover is about 1,235 square feet. This means the price for a condo increased at an estimated $2,779 per month in the past year.
Compared to 12 months prior, there was no significant change in the number of available condos across the cities we track. The number of available unit stayed flat at about 29,200.
The inventory levels across the cities Movoto follows were split, with 16 cities witnessing an increase in inventory and 18 having a decrease in inventory. A single city, Oakland, CA, saw no change.
These three cities saw the greatest increase in the number of condos on the market:
- Las Vegas, NV: In the past 12 months, the number of condos in Las Vegas increased by 101.2 percent, going from 686 condos to 1,380. This is an increase of 694 units.
- San Diego, CA: While San Diego’s inventory didn’t increase as dramatically as Las Vegas’, the city did see a significant rise in the number of condos on the market. Since October 2012, San Diego inventory increased 62.9 percent, going from 645 units last year to 1,051 units at the end of last month.
- Sacramento, CA: The number of condos in Sacramento increased by 48.8 percent, going from 125 in October 2012 to 186 at the end of last month. This is an increase of 61 homes.
The city that saw the greatest decrease in available units was Dallas, TX. In the past year, Dallas’ inventory dropped by 29 percent. In October 2012 there were 1,032 condos on the market, compared to 733 at the end of last month.
On a month-over-month basis, inventory has increased from January 2012 through the end of October. This is a reverse of last year’s trend in which inventory steadily dropped. From September to October, 690 condos have gone on the market across the cities we track. This is less than half the number of condos that went on the market from August to September, which was 1,452 units.
Who is Movoto Real Estate, you might ask? Movoto is a national online real estate brokerage. Our blog has been recognized for its unique approach to city-based research by major news organizations around the world such as Forbes, CBS News, and The New York Times.