Condo sale and price trends in Dallas, Fort Worth

Dallas - In the Dallas-Fort Worth metro area, recent data reveals a slightly faster decrease in condo prices compared to single-family homes, according to data from Zillow and reported by Dallas Metro News.

This trend is part of a broader shift in buyer preferences within the region, with potential homeowners increasingly favoring condominiums and townhouses. The driving force behind this shift appears to be the rising costs of residential real estate, a perspective shared by analyst Hannah Jones of Realtor.com.

The trend is not only local but aligns with nationwide statistics. There's been a noticeably quicker escalation in condominium and townhouse prices compared to single-family residences.

This attraction towards condos can be attributed to two factors: young first-time buyers looking for financially feasible options and older homeowners interested in a maintenance-free lifestyle, say market experts.

As of May, the average condo in North Texas sold for about $272,000, a 9.4% decrease from the previous year. In contrast, single-family homes were priced around $401,000, a 7% year-on-year drop. Sales volume in the condo market surged by 12% this May compared to last year, while single-family home sales declined by 12% in the same period.

Inventory for both types of properties has declined significantly since last year, restricting options for would-be buyers. The overall active listings for condos fell by an astonishing 45% this June compared to pre-pandemic June 2019 figures. Listings for single-family homes dropped by nearly 37% over the same timeframe.

Another noteworthy point is that nine out of ten homeowners with mortgages in Texas have rates below 6%, which deters relocation and limits housing options for new buyers.

In terms of regional differences, while Dallas has avoided sharp condo price increases, cities like San Antonio and Austin have seen significant surges in median condo prices of 31% and nearly 20% respectively, over the past year.

Potential buyers must consider that condo ownership costs are not limited to the purchase price. Factors like homeowners association fees, which differ from one place to another, also impact the final cost.

In a related development adding complexity to the housing landscape, the Federal Reserve has announced a quarter-percentage-point increase in interest rates, hitting a 22-year high, which may further intensify the already high mortgage rates. This decision illustrates the dynamic and challenging environment that characterizes the present housing market in the Dallas-Fort Worth metro area and beyond.

Credit: Dallas Metro News, Axios, Zillow, Realtor.com