Condo Prices Fall in November

The average price of a condo sold and closed is $175,292, a $1,881 drop from the average price in October of $177,173. By contrast, the average price of a single-family home sold rose to $283,517, a one-month gain of $7,678.

The data is based on information released by Metrolist on the last full week of each month. Independent broker Gary Bauer and Steve and Jerry McGuire of RE/MAX Professionals compile the list.

However, the monthly price fluctuations are the result of the mix of condos and homes sold, and do not represent a trend, according to Bauer.

The median price of a condo sold is $155,500, up $1,000 from October. The median price—-which means 50% of the units cost more and half cost less—-often is considered a better indicator of the market, as it is less likely to be skewed by a few big sales.

Bauer's research, which he shared with GlobeSt.com, shows that first-time buyers are being drawn to condos, especially since single-family homes are so expensive. His data indicates that 78% of the condo buyers in November paid less than $200,000 for a condo. The largest single category, 42%, paid less than $150,000 for their condos. After that, 36% paid from $150,000 to $199,999 and 22% paid $200,000 or more.

Richard Wobbekind, an associate professor of finance at the Leeds School of Business at the University of Colorado Boulder, tells GlobeSt.com that he thinks that all attached units—-apartments, condos and townhomes—-will become more attractive to investors in the coming year. Prices may fall as demand wanes, but then pick up, he predicts.