Where exactly does the line fall between professional investment and market manipulation when real estate agents themselves become significant buyers in the very developments they represent? The question gains urgency amid a condo market experiencing unprecedented imbalance, with 72.3% more sellers than buyers nationwide in August 2025, creating conditions where professional insiders may hold distinct advantages over ordinary purchasers managing an already challenging landscape.
Insider advantage meets market distress when the professionals selling condos become their own best customers.
The current condo market reflects substantial structural pressures that distinguish it from other residential sectors. Data indicates 259,638 condo sellers competed for attention from just 150,693 buyers in August, a gap that narrowed slightly from an 81% peak in April but nonetheless marked the fifth consecutive month with at least 70% more sellers than buyers.
This seller surplus stands in stark contrast to the 29.7% gap observed for single-family homes and 37.6% for townhouses during the same period, suggesting condo-specific factors driving the disparity.
Rising HOA dues, escalating insurance fees, and new condo construction particularly concentrated in Florida—which accounts for one-fifth of U.S. condos and contains five of the top ten surplus metropolitan areas—have contributed to depressed price appreciation. These market conditions represent the strongest buyer’s markets since 2013, excluding April 2020, fundamentally shifting negotiating power away from sellers.
Condo prices rose only 3% from spring 2022 to 2025, a figure falling below inflation, while the typical condo sold for $350,000 in August, representing a 1% year-over-year decline. Properties sold for 2% less than asking price and required 58 days to go under contract, with approximately one in ten U.S. condos at risk of selling at a loss.
Investor activity has retreated notably from the condo segment, with purchases dropping 13% year-over-year in the second quarter, while 18% of November transactions involved individual investors or second-home buyers. Despite challenging market conditions, Q3-2024 new condo sales remained 87% below the 10-year average, reflecting broader demand challenges even as developers continue launching projects at premium price points. Cash sales represented 27% of transactions in November, down from 29% the prior month but up from 25% in 2024.
The median condo price reached $358,600 in November, reflecting a marginal 0.1% year-over-year increase that trails the 1.2% gain recorded for single-family homes at $414,300.
Although condo prices remain 13.5% lower than single-family alternatives, association fees effectively narrow this differential for prospective buyers weighing total ownership costs against potential appreciation in a market where 88% of buyers utilized real estate agents or brokers to complete their transactions.
