Throughout Texas, condos and townhomes have proven to be one of the fastest-growing segments of the real estate market over the past year. That’s according to Vicki Fullerton, chairman of the Texas Association of Realtors. Fullerton was quoted in the Texas Condominium Sales Report recently released by the Texas Association of Realtors.
As housing demand maintains strong growth, inventory struggles to keep up. The pressure is on developers to produce inventory fast enough to try to keep up with the pace of home sales. Large metro areas have little land to develop, so builders are developing outside the urban core. Even in more suburban areas, buyers are increasingly looking for affordable and efficient alternatives to single-family homes. “These property types are increasingly preferred among many Texas homebuyers, as they often are less expensive to purchase, require less upkeep and provide closer access to their work, schools and essential services,” explained Fullerton.
Jim Gaines, chief economist with the Real Estate Center at Texas A&M University, explained how population growth has increased housing demand to suburban areas. “Rapid population growth across the state has turned cities surrounding our major metro areas into job and development hubs, creating a need for condominium and townhome development outside of urban centers that did not exist before,” said Gaines.”As this growth continues over the next decade, higher density options such as condominiums and townhomes will be essential to maintaining affordability in our cities.”
The Texas Condominium Sales Report is developed by the Real Estate Center at Texas A&M University. To develop the report, A&M works with the Data Relevance Project, a partnership among the Texas Association of REALTORS® and local REALTOR® associations throughout the state. The report analyzes condominium and townhome sales data from July 2016 through July 2017. It covers the Austin, Dallas-Fort Worth, Houston and San Antonio Metropolitan Statistical Areas.
Texas Condos and Townhomes Sales Volume July 2016 through July 2017
- Total sales dollar volume of condominiums and townhomes sold in Texas was $5,411,886,686,
- Condominiums reached $3,329,759,930
- Townhomes sales reached $2,082,126,756
- Sales for condos increased 8.6 percent to 14,656 sales
- Townhome sales increased 5.1 percent to 8,134 sales
Texas Condos and Townhomes Prices July 2016 through July 2017
As Texas condo and townhome sales increased, so did sales price for each product type. Median sales price for condos made slightly higher gains than did the median sales price for townhomes.
- Statewide, the year-to-date median sales price as of July 2017 was $179,900 for condominiums
- The median sales price for townhomes reached $226,675
- Condo median sales price made an 9.0aercent increase
- Townhome median sales price reached 8.5 percent
- Average price-per-square foot during this time frame was $178 for condominiums and $136 for townhomes in Texas.
Texas Condos and Townhomes Inventory Statistics
Inventory levels for townhomes and condos in the state reached 4.9 months of inventory as of July 2017. The numbers reflect an increase of 0.1 months for condominiums and a 0.6-month increase for townhomes. In the first seven months of the year, Texas condominiums and townhomes spent an average of 61 and 54 days on the market, respectively.
Condos and townhomes in Texas are an ideal housing product for consumers looking for a less expensive, less labor intensive and more efficient option than single-family homes. However, buyers are strongly encouraged to enlist the help of a professional real estate agent with experience in condo and townhome sales and purchases. As Fullerton pointed out, “Texas homebuyers interested in buying a condominium or townhome are encouraged to work with a Texas Realtor in advance of starting the home search process, as many of these properties can come with additional restrictions and requirements that do not apply to single-family homes. A Texas Realtor can help condominium buyers know what to look for and explore all options before making a decision.”
If you’re interested in getting help with an Austin area condo or townhome purchase, reach out to David Brodsky Properties to speak with one of our real estate strategists with expertise in the segment. Our consultation is free and you’re under no obligation to contract our services in the purchase of your home. An hour spent on learning more about owning an Austin area condo or townhome will help you prepare for owning a condo or townhome.
Read more about Texas real estate.
Download the 2017 Texas Condominium Sales Report.