Single-Family Homes Are Selling While Condos Sit – Here’s Why the Market Has Flipped

Written by:

Rudi Davis

Date:

09 Jan 2026

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Across major U.S. cities, a surprising trend has emerged: single-family homes are selling quickly, while condominiums are lingering on the market. Traditionally, condos have served as the more affordable entry point for first-time buyers, but current market dynamics are turning that expectation upside down. Buyers are finding more condo options and less competition, while sellers are discovering their units are attracting fewer offers. Here’s what’s driving the shift.

The Price Paradox: Why Higher-Priced Homes Are Selling Faster

Conventional wisdom suggests that lower-priced condos should sell faster than single-family homes, especially in a high-interest-rate environment. Yet, the opposite is happening. Single-family dwellings, despite higher price tags, are outperforming condos in both sales volume and price appreciation.

Jonathan Miller, President and CEO of Miller Samuel Inc., an appraisal and consulting firm, explains: “The higher the price or the higher the wages of a buyer, the more active that market is.” In short, buyers with higher incomes face fewer obstacles, allowing them to proceed with purchases, while others are constrained by affordability.

How Wealthier Buyers Avoid Mortgage Rate Pressures

A key factor behind this trend is the way affluent buyers finance their purchases. While most buyers face a 6.4% rate on a 30-year fixed mortgage, high-net-worth individuals often have access to alternative financing through private banks or wealth managers. These buyers can secure rates in the low 5% range or pay all cash, thereby sidestepping the impact of high mortgage rates.

This financial flexibility allows buyers at the upper end of the market to act decisively, while entry-level buyers are more likely to be priced out or forced to wait. As a result, expensive single-family homes are getting snapped up, while more affordable condos see less activity.

New Construction: Demand Concentrated at the Top

The same pattern is even more pronounced in the new construction market. In Miami, for example, newly built homes are selling at twice the rate of resale properties. Affluent buyers are seeking out move-in-ready, modern homes and are willing to pay a premium for them.

Older condos, especially those in lower price brackets, are struggling. Recent analyses of Miami’s housing market show the majority of sales activity is concentrated in new builds, while resale condos face longer days on market and more frequent price reductions.

Implications for Condo Buyers

For condo buyers, the current market offers more leverage than at any point in recent years. With less competition, buyers can take their time, compare multiple units, and negotiate on both price and terms. This is a sharp reversal from the frenzied environment of recent years, where bidding wars and quick sales were common.

Buyers should focus on buildings with strong financials and minimal risk of special assessments, as new regulations in states like Florida have made some condos harder to finance. Negotiating for concessions such as closing cost credits or repairs is increasingly common, and buyers shouldn’t hesitate to make offers below the asking price. Sellers are more open to negotiation than they were six months ago.

Advice for Condo Sellers

For those selling condos, realistic pricing is more critical than ever. Overpricing will keep a unit on the market, and extended days on market often lead to steeper price cuts later. Sellers should consider offering incentives, such as covering a portion of HOA fees for the first few months or including appliances and furniture to entice buyers.

Presentation also plays a critical role. With more inventory available, buyers are selective. Well-staged units with neutral decor, ample lighting, and minimal clutter consistently outperform dated or cluttered properties.

A Market Defined by Financial Divide

The current divide between single-family homes and condos reflects a broader split in the housing market: buyers with higher incomes and access to alternative financing can move freely, while others are waiting for rates to drop or prices to fall. This gap is likely to persist for the next several years. Most forecasts suggest that mortgage rates will remain above 6% until at least early 2027, keeping many would-be buyers on the sidelines and favoring those with more resources.

“The more affluent you are, the more likely you are to have alternative financing,” Miller says. “You’re not paying full retail.” For most buyers, patience and flexibility are essential. Properties that have been on the market longer are more likely to have motivated sellers, so focusing on these listings can lead to better deals.

For sellers, it’s essential to assess your property’s position honestly and price it to move. Overestimating value in a slow condo market only leads to extended listings and deeper price cuts down the line.

Looking Ahead: When Will the Condo Market Recover?

The condo segment is unlikely to rebound quickly. Until mortgage rates fall significantly or entry-level buyers’ affordability improves, single-family homes will continue to outperform condos in most markets. In the meantime, buyers who are prepared and willing to negotiate can secure favorable terms, while sellers must be realistic and proactive to achieve a sale.

This article provides insights into current housing market trends. It is not intended as financial or legal advice.