Median Home Price Does Classic Head-Fake as Home Sales Plunge and Condo Sales Collapse | Wolf Street
Condo sales plunged 31.6% year-over-year, more than twice the decline of house sales (-15.5%). Condos generally are somewhat lower-priced than houses. The fact that condo sales plunged more than twice as much as house sales shows two things: One, the mix changed, resulting in a larger share of houses in the mix and a smaller share of condos; and two, it indicates that the lower half of the price scale is seeing relatively larger volume declines – both houses and condos – than the higher end.
This dynamic makes intuitive sense: Volume plunged as tens of millions of people have lost their jobs and are out of the housing market, and those that still have jobs but are not at the top of the income scale and have perhaps lower credit scores and need riskier mortgages to buy a home, well, they have problems getting approved for a mortgage because now riskier mortgages have become harder to come by, and because lenders are getting more skittish about lending on condos, which are perceived as riskier.