New report suggests a glut of condo supply is hitting the market nationally
The United States condo market has swung in favor of buyers, with 72% more condo sellers than buyers nationwide in August, according to new data from real estate giant Redfin.
The imbalance, amounting to nearly 109,000 more sellers than buyers, has made spring and summer 2025 the strongest buyer’s market for condos since at least 2013, excluding the early pandemic freeze.
Despite the glut of listings, prices have barely budged. Redfin’s report, based on proprietary transaction data, found that the typical condo sold for $350,000 in August, just 1% lower than a year earlier.
Why sellers are flooding the market
Several factors are fueling the surge in condo listings. High mortgage rates and near-record prices have slowed sales across all property types, but the gap is widest for condos, where rising HOA dues, insurance costs, and special assessments are eroding affordability.
Nearly 3 million households in the US now pay more than $500 each month in condo or HOA fees, according to the latest American Community Survey (ACS). Earlier this year, Jeremy Schachter, a branch manager at Fairway Independent Mortgage Corporation, told Mortgage Professional America that condo sales in Phoenix, Arizona have slowed down, partly because of these high fees.
New regulations, such as Florida’s post-Surfside inspection mandates and California’s balcony rules, are also driving up costs and complexity, pushing some buyers toward single-family homes or townhouses.
Florida stands out, with five of the ten largest condo seller surpluses in the nation. In Miami, there were 251% more sellers than buyers in August, while Tampa and San Antonio also posted outsized gaps. Investor activity has cooled as well, with purchases by condo investors dropping 13% year over year in Q2.
With more supply than demand, sellers may need to lower their asking prices to make their properties more attractive. “We’re seeing sellers become more flexible on concessions and price if the property sits for more than 45 days," Marc Halpern, CEO of Foundation Mortgage, previously told Mortgage Professional America.
Buyers gain leverage, but prices hold
Despite the oversupply, prices have remained resilient. The typical condo sold for 2% below asking in August, and units lingered on the market for 58 days. That's two weeks longer than last year and the slowest August in 12 years.
Industry analysts caution that buyers should scrutinize HOA finances and potential special assessments before committing. “It’s a good idea to talk to a mortgage lender about bundling all the monthly costs of owning a condo,” Redfin advised.
While the flood of condo sellers has yet to trigger a dramatic price drop, the current market offers rare leverage for buyers—at least for now. With some sellers retreating and affordability pressures mounting, the window for deals may not stay open indefinitely.
"This is also a good market to negotiate a strong bargain,” Halpern said. “Especially if you're a serious buyer with flexible financing. Sellers with homes sitting on the market are more open to concessions, rate buydowns, and price adjustments. We’re not seeing a market crash, but we are seeing more room for negotiation than we've had in years. Brokers who know how to structure creative offers can help their clients capitalize on that."
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
