It's not just Houston's sultry summer weather that's heating up.
Condominium and townhouse sales are also hot, with an average double-digit growth among Texas' four major cities during the first half of 2014, making these properties the fastest-growing segment of the state's housing market.
"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."
Houston, Austin, Dallas and San Antonio experienced an average 10.5-percent jump in condos sale between January and May, according to the 2014 Texas Condominium Mid-Year Sales Report from the Texas Association of Realtors.
Individually, San Antonio condo sales jumped 18 percent, followed by Austin at 14 percent, Houston at 6 percent and Dallas at 4 percent.
"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," Dan Hatfield, chairman of the Texas Association of Realtors, said in a statement. "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."
The report shows that in Houston, 2,678 condos were sold during this time period. The median price increased to $145,000 — a 6 percent gain from 2013. At the same time, average days on the market dropped to 55, a 16-percent decrease from the year before.
In Austin, 1,349 condos were sold between January and May, a 14-percent increase from the same period in 2013. The median price increased to $214,480 — an 11-percent gain from the prior year. Average days on the market dropped to 47, a 24-percent decrease from the year prior.
In Dallas, 2,383 condos were sold during this time period, a 4-percent increase from the same period in 2013. The median price increased to $160,000 — a 4-percent gain. Average days on the market dropped to 62, a 15-percent decrease from the year prior.
In San Antonio, 271 condos were sold between January and May. The median price increased to $105,300 — a 9-percent gain. Average days on the market dropped to 95, a 15-percent decrease.
"Developers are now looking upward for opportunities to build and investing in multifamily developments both in (urban) centers and even in some suburban areas," Jim Gaines, economist with The Real Estate Center at Texas A&M University, said a statement.
"Condo sales will likely be a strong driver in the Texas housing market for the rest of the year.”
Condo sales in Dallas are up 4 percent during the first half of 2014 over the same period in 2013.
