HOUSTON – (By Dale King, Realty News Report) — A scorching Texas summer may be over on the calendar, but the state’s real estate market remains hot. Industry analysts expect some stabilization ahead, yet recent data show strong gains in home sales, rentals and lease activity. The newly released 2021 “Texas Condominium Sales Report” from Texas Realtors highlights a surge in condominium and townhome sales that matches broader market trends.
The report shows that condo sales across Texas climbed 41 percent, reaching 17,152 units sold between July 2020 and June 2021. Townhome sales rose 36.4 percent to 11,508 over the same period.
Prices for condos and townhomes also rose, though regional differences were significant. Statewide, the median condominium price in June 2021 was $240,000, a 24 percent increase year over year. The median townhome price for June 2021 was $285,000, up 18.7 percent from June 2020.
Among the major metropolitan areas analyzed, Austin posted the highest prices in June 2021: a median condominium price of $401,750 and a median townhome price of $322,443. Dallas followed, with a median condo price of $230,000 and a townhome median of $340,000.
Houston fell near the middle of the pack, with a June median condo price of $163,500 and townhomes at about $271,500. San Antonio’s condo median was similar to Houston’s at roughly $167,500, while townhomes averaged about $238,000.
In the McAllen area, condos had a median price near $120,000 and townhomes at $199,900. El Paso registered the lowest condo median among the metros studied at about $102,000, while townhomes averaged $170,500.
The Texas Realtors’ analysis covered condominium and townhome data statewide and focused on these metropolitan statistical areas: Austin-Round Rock, Dallas-Fort Worth-Arlington, El Paso, Houston-The Woodlands-Sugar Land, McAllen-Edinburg-Mission, and San Antonio-New Braunfels.
“The rapid uptick of condo and townhome sales is another great example of demand for Texas real estate,” said Marvin Jolly, chairman of Texas Realtors. “The market for these property types is as competitive as ever and offers another strong option for those who wish to live in Texas.”
“Condos and townhomes,” he added, “are available at multiple price points and can be an excellent choice for entry-level buyers, young professionals, or retirees seeking a low-maintenance, lock-and-leave lifestyle.”
At the upper end of the market, demand for luxury condominiums remains strong, noted Nancy Almodovar, founder of Nan and Company Properties in Houston. Her firm currently lists a 10,000-square-foot penthouse at the Astoria tower in the Galleria area for $8 million.
New condo construction is also expanding in Galveston. “Inventory is tight, so we’re very excited,” Almodovar said. Her firm is launching two projects through its developer services division, including a Tiki Island development—the first new construction there in 14 years—where prices will start around $800,000. Another new project will be located near the west end of Galveston’s seawall.
In Houston, condominium median prices peaked in May 2021 at $166,000 and dipped slightly in June. Townhome medians peaked earlier in April at $280,000, fell to $259,990 in May, and began rising again by June.
From mid-2020 through the end of the year, Texas Realtors reported monthly sales of 300 to 400 condos and townhomes. Condo sales slid to 290 in November but recovered to 333 in December. Early 2020 saw weaker activity in Houston—January posted 256 condos and 248 townhomes sold, and February recorded 270 condos and 271 townhomes. Sales accelerated in March and moved into the 400s by spring, with townhomes exceeding 500 sales per month in May and June.
Dollar volume was substantial. In Houston, condo sales from July 2020 to June 2021 totaled approximately $888,940,977, while townhome sales reached about $1,377,689,430. Statewide, condominium sales volume for that period totaled $5,067,334,976 and townhome sales totaled $3,423,466,353.
Inventory tightened across the state. As of June, Houston had roughly 3.6 months of condominium inventory and 2.3 months of townhome inventory. Texas condominium inventory fell from 5.1 months in June 2020 to 3.6 months in June 2021, and townhome inventory dropped from 4.2 months to 2.3 months. Median days on market also declined: condos averaged 47 days in June 2021, down from 71 days a year earlier; townhomes fell from 63 days to 36 days.
“Many buyers choose these property types for their proximity to urban centers, added amenities and lower maintenance,” Jolly said. “Those qualities make condos and townhomes attractive alternatives for people who may not want a single-family home.”
Sept. 28, 2021 Realty News Report Copyright 2021
For more about Texas real estate, see the book Houston 2020: America’s Boom Town – An Extreme Close Up by Ralph Bivins. Available in ebook and print.
Images: High-rise construction in downtown Austin. Photos by Ralph Bivins of Realty News Report Copyright 2021.
File: Condo Sales Up 41 Percent in Texas
Image: Rendering of the Hawthorne condo tower in the Tanglewood area at 5656 San Felipe in Houston. The 17-story tower will include 67 homes priced at $1.2 million and up. Architecture: Kirksey. Courtesy: Pelican Builders.