Higher sales, lower prices for North Texas condos
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Dallas-Fort Worth area condo prices have dropped slightly faster than the price of single-family homes, per the latest Zillow data.
The big picture: More buyers have turned to condos and townhouses as housing costs surge, Realtor.com analyst Hannah Jones tells Axios.
- Across the U.S., that segment's prices are now climbing at a faster clip than single-family homes, the real estate company's data shows.
Why it matters: Condos' growing appeal comes as younger buyers look for more affordable homes and empty-nesters want to downsize to a maintenance-free lifestyle, real estate analysts say.
What's happening: In May, the typical North Texas condo sold for almost $272,000, down 9.4% compared with last year. A typical single-family home cost about $401,000, down 7% year over year.
- Yes, but: The number of condos sold in May increased 12% compared with May 2022, while the number of single-family homes sold dropped 12%.
Meanwhile: The number of listings for condos and single-family homes has dropped since last year, giving potential buyers fewer options.
- And overall active listings of condos were down 45% in June compared with June 2019, before the pandemic.
- Single-family home listings were down nearly 37% in the same period.
The intrigue: Nine in 10 mortgage-holding Texas homeowners have a rate below 6%, keeping them locked into place and giving buyers few homes to choose from.
Zoom out: While the Dallas area hasn't seen sharp price increases for condos, other Texas cities have. The median price of condos in San Antonio jumped almost 31% in the past year, compared with a nearly 6% price drop for single-family homes.
- Austin's median condo price increased by almost 20% compared with the cost of a house increasing by 17% in the past year.
Be smart: Homeowners association fees, which vary from building to building, factor into the cost of owning a condo.
Of note: The Federal Reserve raised interest rates yesterday another quarter of a percentage point, reaching a 22-year high amid already high mortgage rates.