According to the report, Austin, Dallas, Houston, and San Antonio experienced an average 1% decrease in condo sales between January and May 2015. While Dallas and San Antonio posted small annual gains of 3% and 6%, respectively, condo sales decreased 1% year-over-year in Houston and 12% year-over-year in Austin in the first half of the year.
Scott Kesner, chairman of the Texas Association of REALTORS®, explained: “The rapid pace of Texas’s housing market growth has slowed in the last year, and that includes the condominium and townhome market. However, the demand for condos remains strong, as condos continue to spend less time on the market and sell at higher prices. Those higher prices, however, could be impacting some Texas homebuyers’ ability to afford condos, especially in our state’s metro areas.”
Condos showed consistent gains in median price in three of the four metro areas in the first half of 2015, with the exception of Houston, which was unchanged in median price compared to the first half of 2014. While still priced considerably less overall than single-family homes, the price-per-square-foot is significantly higher for condos and townhomes versus single-family homes.
Jim Gaines, Ph.D., economist with the Real Estate Center at Texas A&M University, explained: “The land and development costs for condominiums in Texas’s metro areas are so high that new condos being built today are priced outside of an affordable price range for many first-time homebuyers and buyers with lower household incomes. Existing condos, by comparison, are priced significantly less than new condos and therefore have a much higher demand and tighter inventory. In several of Texas’s metro areas, existing condos and townhomes are driving sales in that segment of the housing market.”
In Austin, 1,178 condos were sold between January and May 2015, a 12% decrease from the same period in 2014. Median price increased to $222,000, a 4% gain from the year prior. New listings rose 2% to 1,904 listings, whereas active listings jumped 14% to 623 listings, and pending sales dropped 4% to 1,496 sales from January to May. Finally, average days on the market fell to 43 days, an 8% decrease from the year prior.
In Dallas, 2,454 condos were sold between January and May 2015, a 3% increase from the same period in 2014. Median price increased to $171,020, a 7% gain from the year prior. New listings decreased 3% to 3,366 listings, whereas active listings dropped 20% to 1,101 listings, and pending sales rose 11% to 2,618 sales from January to May. Finally, average days on the market dropped to 48 days, a 22% decrease from the year prior.
In Houston, 2,668 condos were sold between January and May 2015, a 1% decrease from the first half of 2014. Median price remained unchanged at $145,000 during the same time frame. New listings increased 7% to 4,471 listings, whereas active listings increased 2% to 1,490 listings, and pending sales rose 25% to 2,126 sales from January to May. Finally, average days on the market dropped to 51 days, a 9% decrease from the year prior.
In San Antonio, 288 condos were sold between January and May 2015, a 6% increase from the same period in 2014. Median price increased to $189,900, a 9% gain from the year prior. New listings decreased 12% to 467 listings, whereas active listings dropped 21% to 302 listings and pending sales rose 6% to 284 sales from January to May. Finally, average days on the market dropped to 89 days, a 7% decrease from the year prior.
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.
