Condo Prices Fall by a Smaller Percentage than Home Prices

By Anuradha Kher, Online News EditorWashington, D.C.–Average condo and co-op prices across the country have been falling in the last year, according to the National Association of Realtors’ 2008 research on existing home prices.While the average price for condos and co-ops went up from 2005 to 2006, it decreased by 2.7 percent from January 2007 to February 2008. The average price of condos and co-ops in 2005 was $260,800, which increased to $264,300 in 2007. However, in February the average price was down to $251,900.While single-family home prices fell by an average of 7.5 percent, condo and co-op prices faced a smaller decline at 2.7 percent, according to NAR’s data.“of course, the major reason for condo prices falling, is that there is an oversupply of units in the market,” NAR spokesman, Walter Moloney, tells MHN. “There are first time homebuyers who due to the sub-prime crises are choosing to rent and therefore a lot of condos are also being converted into apartments.”As a result, nationally, the average rent this year is expected to go up by 5.3 percent, according to Moloney.Currently, the New York market is much more stable in terms of demand and supply, he says.