The Real Truth About Buying a Condo in 2025: Why You Must Go In Eyes Wide Open
Thinking about buying a condo this year? You’re not alone but if you’re serious about it, you need to go in with your eyes wide open. The condo market in 2025 is not for the faint of heart. From rising homeowner association (HOA) dues to surprise special assessments and tougher resale conditions, condos require far more homework than many buyers realize. But for those who do the work, there can still be smart deals hiding in plain sight.
Let’s break down what you need to know whether you’re buying your first condo or debating a second home.
It’s a Buyer’s Market but That Doesn’t Mean It’s Easy
Nationally, the condo market is lagging behind the single-family home sector. Condo sales dropped 9% year over year in April, while listings rose. According to Redfin, more than half of all condos sold in April went for less than the asking price. In plain English: sellers are negotiating, and buyers have more leverage than they’ve had in years.
That doesn’t mean it’s all smooth sailing. Some units are sitting on the market for months, and not always because they’re overpriced. Buyers are digging deeper, asking tougher questions, and backing out more quickly when something feels off.
The Rise of the Savvy Condo Buyer
Today’s condo buyers are doing more than just visiting open houses. They’re requesting meetings with HOA board members. They’re combing through association budgets, reviewing reserve studies, and demanding transparency around upcoming repairs. They want to know how much money is in the reserve fund and whether future special assessments might be looming.
Case in point: one buyer in Miami recently asked for a video call with the building’s condo board president. A few years ago, that would have been unthinkable. Today, it saved the deal.
Special Assessments: The Hidden Cost You Can’t Ignore
If you take away one piece of advice, it’s this: ask about special assessments. These are extra charges condo boards issue to fund large repairs or maintenance projects not covered by reserves. They’ve become increasingly common since the tragic Surfside condo collapse in Florida in 2021, which led to stricter maintenance standards and repair schedules.
In one Michigan deal, a buyer found a $300 monthly assessment to fix driveways. Because the fee had an end date and the price was already discounted, he moved forward. But in other cases, these assessments can add tens of thousands of dollars to your total cost and kill a deal if discovered too late.
Don’t Be Fooled by “Affordable” Listing Prices
Condo prices can look attractive, especially in markets like Michigan where they’ve risen more slowly. But the sticker price doesn’t tell the full story. HOA dues are up nationally, 7% year over year and as much as 10% in some states. In places like Cambridge, Massachusetts, $1,900 monthly dues have been enough to scare off serious buyers even on million-dollar units.
So before you get too excited about the list price, calculate the total monthly cost including dues, assessments, and property taxes. Then run those numbers against your budget.
Why Selling a Condo Today Is an Art and a Science
From the seller’s perspective, this is a market that requires finesse. Pricing too high will backfire. Buyers have more options and less patience. Transparency is no longer optional, it’s expected. That means being upfront about building repairs, reserve fund status, and assessments. Some sellers are even prepaying special assessments or reducing their prices to sweeten the deal.
Mortgages Are Tougher Too
Getting financing for a condo is often more complicated than for a single-family home. Lenders want to know the building is financially healthy. If your building doesn’t meet Fannie Mae’s standards for insurance coverage or structural integrity, you might find yourself shut out of traditional financing altogether.
Cash buyers are increasingly common in this market. One Michigan buyer negotiated his way into a discounted condo by offering all cash. He avoided today’s high interest rates and skipped the financing headaches.
Eyes Wide Open: My Best Advice
I’ve always told clients the same thing: do your research, get every document, and don’t rush. The more information you have, the better your outcome. That means:
- Request the condo association’s financials, including budgets, reserve studies, and meeting minutes
- Ask directly about current and planned special assessments
- Understand your total monthly obligation: HOA dues, assessments, taxes, insurance
- Don’t rely on old comps because this market moves quickly
- Be realistic about resale. Condos generally appreciate more slowly than houses
- Work with an agent who knows the local condo market and can spot red flags early
Further Reading
Want to dig deeper into what is happening in the condo market right now? These two Wall Street Journal articles are excellent resources:
- Is a Condo Really Worth It Right Now? (WSJ)
- The New Playbook for Selling Condos in a Tough Market (WSJ)
Final Thoughts: A Condo Can Still Be the Right Choice
For the right buyer, the right condo in the right market still makes sense. Maintenance-free living and shared amenities can be appealing, especially for part-time residents or those who don’t want the hassle of yard work and upkeep.
But this isn’t a market for impulsive decisions. Go in with a clear understanding of the risks, and be prepared to walk away if something feels off. If you can do that, you may find a great home at a better price than you could a year ago.
If you are thinking about buying or selling a condo and want someone trustworthy to guide you through it, I am happy to connect you with a top-tier real estate professional in your area. I have built a strong network of experienced agents across the country who are transparent, diligent, and great at helping clients make informed decisions. Just reach out and I will make the introduction.
