Condos and townhomes are hot properties in DFW so far this year.
North Texas condo sales increased 3.8 percent year-over-year to 1,536 condo sales during the January to May 2016 timeframe. Townhome sales increased 8.2 percent to 1,019 townhome sales during the same period, according to the 2016 Texas Condominium Mid-Year Sales Report by the Texas Association of Realtors (TAR). DFW is the only major metro in the state where townhome sales increased.
“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 TAR. “These Millennials and retirees don’t want the upkeep of a traditional, single-family home and want to be close to nightlife and amenities.”
Here’s a snapshot of the DFW condo and townhome market during the first six months of this year:
- $160K – Median price for condos, 10.3 percent higher than January – May 2015
- $235K – Median price for townhomes, 7.8 percent higher than January – May 2015
- $160 – Average price per square foot for condos, 7.2 percent higher than January – May 2015
- $137 – Average price per square foot for townhomes, 7.8 percent higher than January – May 2015
- 701 – Active condo listings on the market, 8.4 percent less than January – May 2015
- 424 – Active townhomes listings on the market, 17.5 percent more than January – May 2015
- 2.2 – Months of condo inventory, 0.1 percent less than the same time frame last year
- 2.2 – Months of townhome inventory, 0.2 percent more than the same time frame last year
The TAR reports says condominium sales in Texas’ four largest markets (DFW, Houston, San Antonio, and Austin) have seen increasing demand over townhomes and single-family homes among young professionals and retirees.
“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.”
The Texas Condominium Mid-Year Sales Report is based on data from The Real Estate Center at Texas A&M University. It analyzes condominium and townhome sales data from January through May 2016 for the four major Texas metros.
