Condominium prices in the U.S. are declining, with the average price dropping 2% to $354,100 in May, the second-largest year-over-year drop since 2012, according to Redfin Corp.

Mortgage rates peaking at 8% in October 2023 stalled new buyers, especially younger generations, affecting condo prices.

HOA and insurance fees are pushing homeowners away, contributing to the decline in condo prices, with median HOA fees rising 17.2% in Tampa and home insurance costs expected to increase nationally by 8%.

Condo prices in parts of Colorado have fallen by 2.6% over the past year, potentially offering opportunities for Gen Z or millennial buyers who understand the risks involved in older or underfunded buildings.

Buyers are advised to carefully examine HOA financials, look out for special assessments, and understand the full picture before purchasing discounted condos to ensure a good deal.

Transparency, maintenance history, and financial health are crucial factors for buildings to succeed amidst dropping condo prices, according to real estate professionals.

Read more at Yahoo Finance: Before You Buy That Discounted Condo, Real Estate Pros Say Watch for These Red Flags