Condo Prices Fall in 99 of 100 Top US Markets as New Fannie, Freddie Rules Loom

Condominium sale prices declined year-over-year in 99 of the 100 largest U.S. markets as of mid-October, lagging single-family homes as mortgage rates above 7% and record-high home prices weigh on entry-level buyers, according to Intercontinental Exchange data provided to CNN. Nationally, single-family prices rose 1.5% while condo prices fell 1.1%; Seattle posted the steepest drop at nearly 7%. The divergence reflects condos' role as the entry point to ownership, where demand reacts first to higher rates and new supply can be added quickly, said Andy Walden, ICE's head of mortgage and housing market research. Guidelines released this year by Fannie Mae and Freddie Mac, effective January 2027, will require condo associations to hold larger reserves for buyers to qualify for government-backed mortgages. Agents said the changes could lift HOA fees and special assessments, eroding savings from lower purchase prices. The reckoning intensified after the 2021 Surfside, Florida, collapse, which killed 98 people and prompted statewide safety rules and assessments.