USA - Oceanfront Community Condo Prices Across the U.S. Surged 10 to 40 percent in Q2
West Palm Beach Lead the U.S. in Condo Sales in Q2 -- According to ATTOM, median condo prices in 50 percent of oceanfront counties in the U.S. surpassed the typical $305,000 condo price nationwide, while 50 percent fell below.
It also revealed that median condominium prices increased during the second quarter of 2021 by at least 20 percent, measured year over year, in slightly more than half of oceanfront counties analyzed. Less-expensive oceanfront condo markets, concentrated in the South, generally showed bigger year-over-year gains, while the most expensive counties, located mainly in the West, showed the smallest.
The report looked at 86 counties around the U.S. that bordered the Atlantic Ocean, Pacific Ocean or the Gulf of Mexico and had enough data to analyze, meaning that they had at least 25 condo sales in the second quarter of 2021, the first quarter of 2021 and the second quarter of last year. The report sought to analyze condo price trends in areas similar to the one where the building collapsed in Surfside, FL.
The second-quarter-of-2021 condo price gains in oceanfront counties came at a time when the national housing market boom was roaring into its 10th year, with median single-family home and condo prices rising annually by more than 15 percent across a majority of the U.S. Condo values have continued to rise in oceanfront areas amid a combination of historically low mortgage rates and the ongoing appeal of living along or near oceanside communities.
While the Coronavirus pandemic that hit last year remains a threat to the economy and the housing market, there are especially vulnerable areas, including the South, where fewer people are vaccinated and the latest virus variant has led to a new surge of cases. But second-quarter home sales data shows that oceanfront condo markets continue to ride the decade-long national housing market boom.
"Condos in oceanfront areas appear to be right in the middle of the pack when it comes to the ongoing market boom. Broadly speaking, they are worth close to what condos around the nation are worth and are gaining value at around the same pace as all homes in the U.S.," said Todd Teta, chief product officer with ATTOM. "We will keep an eye on this trend to see if it changes following the Florida incident."
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