WASHINGTON, D.C. – (RealEstateRama) — Condominium sales in Texas’s major metro areas increased and townhome sales fell in the first half of 2016, according to the Texas Condominium Mid-Year Sales Report. Released today by the Texas Association of REALTORS®, the report shows that condominium sales in Texas’ four largest markets have seen increasing demand over townhomes and single-family homes among young professionals and retirees. This is the first time in the report’s history that condo and townhome statistics have been reported separately.
According to the report, Austin, Dallas, Houston, and San Antonio all experienced an increase in condo sales between January and May 2016 compared to the same six-month period last year. Townhomes in the major Texas metros saw a slight decrease year-over-year.
“Many young urban professionals and newly retired baby boomers are buying condos, as they provide an affordable alternative to single-family homes and townhomes,” said Leslie Rouda Smith, chairman of the Texas Association of REALTORS®. “These Millennials and retirees don’t want the upkeep of a traditional, single-family home and want to be close to nightlife and amenities.”
Condos showed double-digit gains in median price in three of the four metro areas in the first half of 2016, with the exception of Austin. Townhomes saw smaller price increases in three metro areas, with San Antonio experiencing a slight decrease. While the median price of condominiums and townhomes is still lower than single-family homes in most areas, the price-per-square-foot is significantly higher.
“A challenge facing new Texas condo and townhome developments is that these types of housing, similar to single-family, are generally not being built for under $200,000 due to high land and labor costs,” said Jim Gaines, Chief Economist with the Real Estate Center at Texas A&M University. “However, the older, existing condos are typically the predominant properties left in Texas’ major metro areas that can be purchased for under $200,000, the price range best suited for first-time, entry-level homebuyers.”
Smith concluded: “Housing affordability is becoming a big issue in Texas. That’s why Texas REALTORS® have worked tirelessly this summer to encourage Congress to pass a bill that increases the number of condos that are eligible for FHA financing. That legislation, already passed unanimously by the House and now under consideration by the Senate, would be the positive step many Texans need to own a condo of their own.”
About the Texas Condominium Mid-Year Sales Report
The Texas Condominium Mid-Year Sales Report is based on data from the Real Estate Center at Texas A&M University and analyzes condominium and townhome sales data for Austin, Dallas, Houston, and San Antonio. The Texas Association of REALTORS® distributes insights about the Texas housing market each month, including quarterly market statistics, trends among homebuyers and sellers, luxury home sales, international trends, and more.
About the Texas Association of REALTORS®
With more than 100,000 members, the Texas Association of REALTORS® is a professional membership organization that represents all aspects of real estate in Texas. We advocate on behalf of Texas REALTORS® and private-property owners to keep homeownership affordable, protect private-property rights, and promote public policies that benefit homeowners. Visit texasrealestate.com to learn more.
CONTACT: Danielle Urban – Pierpont Communications, 512-448-4950