According to data from the Texas Condominium Sales Report provided by the Texas Association of Realtors, state condominium sales fell 2.1 percent to 14,279 sales from June 2017 to July 2018. Conversely, townhome sales increased 6.3 percent to 9,064 sales during that time frame. Despite the dip in condo sales, though, condos and townhomes remain a popular housing product for Texas homebuyers.
“Despite the slight decrease in sales, the Texas condominium and townhome market remains one of the most popular segments of the Texas housing market,” said Kaki Lybbert, chairman of the Texas Association of Realtors in a press release by the association.
“With less maintenance and close proximity to popular attractions, many retirees and young professionals prefer condos and townhomes as an affordable alternative to traditional, single-family homes,” Lybbert explained.
To develop the report, the Texas Association of REALTORS® and local REALTOR® associations throughout the state have created a partnership called the Data Relevance Project, which culminates the data for the Texas Condominium Sales Report. Data analysis for the report is provided by the Real Estate Center at Texas A&M University. It analyzes condominium and townhome sales data from July 2017 through June 2018 for the Austin, Dallas-Fort Worth, El Paso, Houston, McAllen and San Antonio Metropolitan Statistical Areas.
Texas Condos and Townhomes Sales
- From July 2017 to June 2018, the dollar volume of condominiums and townhomes sold in Texas was $5,748,908,746
- During that time frame, $3,414,945,120 of volume was in condominium sales
- Townhome sales made up $2,333,963,626 of the sales volume during the same time period
Sales Prices for Texas Condos and Townhomes
- Statewide, the year-to-date median sales price as of June 2018 was $185,000 for condominiums, an annual increase of 3.4 percent
- The median sales price for townhomes was $226,000 during that time, an annual increase of 2.3 percent
- The average price-per-square foot from June 2017 to July 2018 was $187 for condominiums and $139 for townhomes in Texas
Texas Condos and Townhomes Inventory Levels
Housing inventory for Texas condominiums and townhomes decreased slightly, with condominiums declining 0.2 months to 4.5 months of inventory and townhomes decreasing 0.1 months to 4.6 months of inventory. In the first six months of the year, Texas condominiums spent an average of 65 days on the market, while townhomes spent an average of 61 days on the market.
Outlook for Texas Condos and Townhomes Sales
Some real estate experts expect sales of Texas condos and townhomes to continue to strengthen. High housing demand and low inventory have driven up prices for single-family homes, which has made condominiums and townhomes a more appealing option for buyers. This is especially true for areas that are lean on land to build on, such as in city centers and urban areas. Additionally, buyers looking for a low-maintenance housing option often prefer the ease of exterior lawncare that townhomes and condos offer.
“Across our major markets, condominiums and townhomes are more suited to meet the affordable demands of housing in high-density urban areas,” said Jim Gaines, chief economist with the Real Estate Center at Texas A&M University. “As population growth continues to climb especially in major metropolitan areas of Texas, condominiums and townhomes are prime options for residents looking to own property in densely-populated areas under $300,000.”
Condo and Townhomes Require an Educated Buyer
Although condos and townhomes are an appealing, affordable housing option that offers convenience of care and maintenance due to accommodating HOAs, buyers need to be aware of the differences between this housing product and other housing products, such as single-family homes.
“Condominiums and townhomes offer greater affordability and higher levels of inventory than other housing types on the market,” said Lybbert. “However, these properties often come with strict guidelines and regulations compared to a traditional single-family home. We encourage all homebuyers to look to their Texas Realtors as a resource in helping them navigate through these regulations before purchasing a condominium or townhome in Texas.”
For information on the Austin area condo and townhome market, reach out to David Brodsky Properties. Our expert real estate strategists can help educate you on this particular market and help you decide if this housing type is right for you. Education is the first step to a successful real estate experience and starting early is key to success.