Condos Are the Best Deal in Real Estate Right Now. Here's the Math.

Why is inventory surging?

You’ve probably heard me say that I think 2026 has been the BEST time to be a condo buyer, but you may be wondering why. Different people probably have different theories, but here’s mine:

In 2020-2022, rock-bottom rates created panic buying which then turned into insane competition. The homes that were priced at $500,000 were escalating up to $650,000 and that priced a lot of people out of what would be considered standard “starter homes.” But the rates were so low, they felt like they had to buy before they crept back up! This created two scenarios:

1) Buyers who wanted their starter home were priced out and turned to condos, and

2) Apartment renters who were happy with their living situations caught wind of the incredible interest rates and entered the condo market.

The average homeowner moves roughly every 5-7 years, and condo buyers can hit that ceiling even faster - the smaller space and closer neighbors usually cramp one’s style a lot quicker when lifestyle changes happen. I’m sure you can do the math here: The condo buyers from the early 2020s are entering that 5-year window right now, resulting in a HEFTY wave of condo owners (a lot of whom bought out of necessity, not preference in the first place) listing this year.

What does that mean for condo sellers?

Standing out matters more than ever with this much competition.

Presentation must be sharp. No corner cutting allowed.

HOA must be in good standing financially and, if it isn’t, you must be willing to offer a credit or concession for a potential (or confirmed) special assessment.

What does it mean for buyers?

You have more leverage than ever before. Talk to your agent about how to use it if they aren’t bringing it to your attention.

Ask for a rate buydown, prepaid HOA dues, a longer closing timeline, a longer inspection period…High inventory + soft demand = room to negotiate.

It sounds like a good theory, but have I actually seen evidence to support it?

Yep!

A couple of months ago, I found out that a condo community had a pending special assessment that could cost each owner a maximum of $14k. I relayed to the listing agent that that just wasn’t an amount my buyers could pay in the next year or two. She had no idea it was going to happen and her clients immediately offered to give us a $14,000 credit to compensate!

In May, I got a buyer under contract on an incredible condo within the first week on market and the sellers immediately agreed to pay several thousand dollars to the buyer’s closing costs.

AND there are several options out there now that are offering lower interest rates up front. Take this little Mountlake Terrace condo. The sellers are offering a 2-1 buydown right off the bat - that’s a 2% lower interest rate for the first year and 1% lower the second year!

So that’s your inventory surge explained. This incredible window of the 2020-purchased condos won’t last forever, so always feel free to shoot me a message if the “why” behind it gives you more questions or just makes you want to take action.