Although pending home sales may be down across the nation, home buyers in the state of Texas are helping heat up sales in a specific niche – the condo and townhome market.
According to a recent press release from the Texas Association of Realtors, Texas condominium and townhome sales exceeded $5.4 billion and posted strong gains in sales volume between August 2016 and July 2016.
“The Texas condominium market has been one of the fastest-growing segments of the housing market this year,” said Vicky Fullerton, chairman of the Texas Association of Realtors. “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.”
According to the data, from August 2016 to July 2017, the sales dollar volume of condominiums and townhomes sold in the Lone Star State was $5,411,886,686, with $3,329,759,930 in condo sales and $2,08,126,756 in townhome sales. Texas condo sales rose 8.6 percent to 14,656 and townhome sales gained 5.1 percent to 8,134 during this period, making condominium and townhomes one of the fastest-growing segments of the Texas housing market this year.
Higher sales prices were also reflected for townhomes and condos throughout 2016 and into this year. Throughout the state, the year-to-date median sales price as of July 2017 was $17,900 for condos and $226,675 for townhomes. This represents an annual increase of 9.0 percent and 8.5 percent, respectively. The average price-per-square foot during this period was $178 for condos and $136 for townhomes in Texas.
The housing inventory for Texas condominiums and townhomes grew to 4.9 months of inventory as of July 2017, which is an increase of 0.1 months for condos and a 0.6-month increase for townhomes. According to the Texas Realtor Association’s press release, in the first seven months of 2017, Texas condos and townhomes spent an average of 61 and 54 days on the market, respectively.
“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 Jim Gaines, chief economist with the Real Estate Center at Texas A&M University. “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.”
Fullerton stated, “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.”
In addition to working with an excellent Texas buyer’s agent, we would also recommend teaming up with a qualified, Texas-based mortgage lender who is familiar with the unique requirements of condo and townhome financing. Connect with our team of Texas mortgage experts today to learn more and receive a free, no-obligation rate quote.