July 01, 2014 — Austin

Condominiums and townhomes were the fastest-growing segment of the Texas housing market during the first half of 2014, according to the 2014 Texas Condominium Mid-Year Sales Report. Released today by the Texas REALTORS®, the report shows double-digit growth in condominium (condo) and townhome sales among Texas’s four major markets.

According to the report, Austin, Dallas, Houston, and San Antonio experienced an average 10.5% jump in condo sales between January and May 2014. Individually, San Antonio condo sales jumped 18%, followed by Austin at 14%, Houston at six percent, and Dallas at four percent.

Dan Hatfield, chairman of the Texas REALTORS®, explained: “The thriving economic growth in Texas’s major metro areas has led to a revitalization and redevelopment of our urban centers, providing new needs and opportunities for condo development. Condos offer greater affordability and inventory than other housing types on the market and, as a result, are playing an increasingly important role in the Texas housing market as a whole.”

Indicative of rising demand, condos have shown steady, consistent growth in all four of Texas’s major metro areas in both price as well as sales volume so far in 2014. However, the average price for condos from January through May 2014, which is $226,814 among Texas’s four major cities, is considerably less than other housing types on the market.

According to Jim Gaines, Ph.D., economist with The Real Estate Center at Texas A&M University, this resurgence of the urban centers of Texas’s largest cities has also led to an increase in condo development across the state.

“There is little available land for housing development in Texas’s major metro areas, particularly in its urban centers where housing demand is strongest,” Gaines explains. “Developers are now looking upward for opportunities to build and investing in multi-family developments both in these centers and even in some suburban areas. Condo sales will likely be a strong driver in the Texas housing market for the rest of the year.”

In Austin, 1,349 condos were sold between January and May 2014, a 14% increase from the same period in 2013. Median price increased to $214,480, an 11% gain from the year prior. New listings increased one percent to 1,874 listings, whereas active listings dropped 14% to 546 listings and pending sales increased two percent to 1,552 from January to May. Finally, average days on the market dropped to 47, a 24% decrease from the year prior.

In Dallas, 2,383 condos were sold between January and May 2014, a four percent increase from the same period in 2013. Median price increased to $160,000, a four percent gain from the year prior. New listings remained statistically unchanged at 3,470 listings, whereas active listings dropped 14% to 1,383 and pending sales increased five percent to 2,361 from January to May. Finally, the average days on market dropped to 62, a 15% decrease from the year prior.

In Houston, 2,678 condos were sold between January and May 2014, a six percent increase from the same period in 2013. Median price increased to $145,000, a six percent gain. New listings increased two percent to 4,195, whereas active listings dropped 19% to 1,464 and pending sales increased seven percent to 1,697. Finally, average days on the market dropped to 55, a 16% decrease from the year before.

In San Antonio, 271 condos were sold between January and May 2014, an 18% increase from the same period in 2013. Median price increased to $105,300, a nine percent gain from the year prior. New listings jumped 23% to 535, whereas active listings dropped three percent to 383 and pending sales jumped 25% to 269. Finally, average days on the market dropped to 95, a 15% decrease.