Multifamily buildings on Franklin Street in Cambridge. iStock photo

For years, single-family homes and condominium sales tended to go in slightly different directions during uncertain economic times, with more expensive single-family sales struggling and more affordable condos faring better. 

But those days are long gone. If anything, condominiums, which are often seen as the cheaper housing option for new homeowners, are the ones struggling a bit during today’s economic uncertainties, according to new data from the Greater Boston Association of Realtors, which covers most of the area within Route 128 plus MetroWest.  

More condo listings went pending in March than single-family sales, 896 versus 860, which indicates buyers were indeed flocking a bit more to condos, market-watchers say. But year-over-year, these pending condo sales were down by 28.4 percent, compared to the single-family decline of 25.2 percent. 

Numbers of new condo listings were also down by 25.9 percent in March, to 1,379, compared to a 19.2 percent decline in single-family listings, to 1,317 homes. 

Confusingly, though, the number of active single-family listings in GBAR’s territory rose by 17.8 percent in March, to 1,206, while the number of condo listings stayed nearly even at 1,671. 

No Clear Answer 

Experienced agents say there’s a number of possible reasons for the slightly varying market performances of condominiums versus single-family homes, such as fewer newly constructed (and more expensive) luxury condos coming on the market of late. 

Other market-watchers say year-over-year statistics for March might be misleading, pointing to year-to-date data from GBAR that shows the median condo price in its territory actually increasing by 5.2 percent in the first quarter of 2023, compared to a 0.6 percent decline for single-family homes during the same time period.  

But real estate officials do agree: The numbers show condo sales and prices are no longer significantly outperforming – or underperforming – single-family homes during more turbulent economic times. 

“It’s a parallel market,” said Amy Mizner, a Realtor with Gibson Sotheby’s International Realty who covers the MetroWest luxury market. “Condo and single-family sales and prices kind of run parallel to each other now.” 

Melvin Viera, a Realtor at RE/MAX Destiny in Boston and immediate past president of GBAR, said he’s never been a big believer in affordability being the primary driver of what type of home someone will ultimately buy, be it a condo or single-family home. 

Instead, he said the difference between condos and single-family sales is often driven more by buyer “preferences,” such as some wanting to live in an urban environment with all its amenities versus others who want to live in the suburbs for their higher-quality schools. 

As for the recent statistical performance of the two types of housing units, Viera, who focuses on the Boston, Cambridge, Somerville and Medford markets, said the entire industry is going through “crazy times,” with historically low inventory, higher interest rates and fears of a recession all pulling buyers and sellers in varying directions. 

Priced-Out Buyers 

Homebuyer demand for both condos and single-family homes is still strong, but higher interest rates and prices are discouraging many from entering the market now, Viera said. 

For potential sellers, they’re hesitant to put their homes on the market out of fear low inventories will make it hard to find a replacement home at an affordable price, Viera said. 

“It’s all the same for all areas right now,” he said of inventory and price challenges for condos and single-family homes throughout the region. “There’s a weird feel to the market today.” 

Tia Zaferakis, a Realtor and relocation specialist at residential brokerage Jack Conway, said it’s been an “ever-changing market” for months now for all types of housing. 

Zaferakis, who covers Boston’s Back Bay, South Boston and South End markets, said demand for condos is still strong – just not as strong as in years past.  

There are not as many multiple-bid sales today and sellers aren’t getting their asking prices as often, she said. 

In March and April, 34 out of 50 sales in her market area were below asking prices, she said. 

“What was happening 12 months ago has not been happening recently,” she said. 

In all, the median condo sale price in Boston’s core neighborhoods, from the Fenway and South End through the North End, were up a modest 3.7 percent, to $910,000, in March, according to The Warren Group, publisher of Banker & Tradesman. The median condo sale price in the same neighborhoods, where much of the city’s luxury inventory is concentrated, was up 3.05 percent, to $997,000, during the first quarter of 2023. 

The tally of units sold in March showed 20.37 percent fewer condos sold that month, and 25.58 percent fewer sold in all of Q1. 

Old Units Lose Out to New-Builds 

Alison Socha, a Realtor at Leading Edge Real Estate and the current president of GBAR, said condos and single-family home sales are performing roughly the same these days in terms of price and sales swings.  

“There are more similarities in trends,” she said. 

If anything, there’s a performance gap between new versus old condos, she said. 

Prices for newly built condos, particularly new townhouse-like units in the suburbs, are stronger than prices for existing, re-sold condos, she said.  

Some units on the resale market are simply overpriced in today’s market, she added. 

“It’s like there’s two [condo] markets,” Socha said. “New construction is usually pretty firm in prices.” 

As for the remainder of 2023, Socha and others interviewed for this story said they don’t anticipate major market changes in coming months if inventory levels don’t significantly rise. 

“It just looks like we’re going to see a lot of the same, but perhaps at a different pace,” she said.  

“Everyone is just on pause,” said William Montero, a Realtor at Gibson Sotheby’s International Realty in Boston and Mizner’s partner on an urban-suburban-focused luxury team. “People are still asking for top dollar, but they’re not always getting it. It’s definitely not been a normal spring so far. People seem to be tightening their belts and waiting.”