Houston townhome market news

February 14, 2008 7:07:43 PM PST
Houston's housing market is staying stable, but builders of condos and townhomes are dealing with a pinch. Sales have dropped and that has some owners worried.

The average price for a townhome in the Houston area is around $137,000. That is a drop of about 7%. But price depends on where you live.

When Tom Jackson and his wife decided to downsize a few years ago, a townhome seemed a perfect fit.

He admits he's fully aware of where the market is now.

Overall townhome and condo sales in Houston are down about 9%.

In December 2007, 165 fewer properties sold than the previous December.

"There are going to be segments of town we're going to see property values maintained or increased, and there is going to be places where it's going to start to falter," said realtor Sandra Gunn.

One area suffering the most is in the Alief area. Realtors say it's been overdeveloped with multi-family homes. Sales are down about 18%, values dropped nearly 10%.

However, other areas such as Midtown where property is scarce, sales are down less about 8%. But home prices continue to increase.

In the past four years, Jackson's home earned about $80,000.

"I have not seen anything to change my feeling that we've made an excellent investment when we've moved down here," he told us.

Another area that appears to continue to do well is The Heights where both sales and property values continue to increase.

We checked with the Houston Association of Realtors and they tell us townhome and condo sales are down when compared year to year. In December 2007, 510 properties were sold. Back in December 2006, 675 properties were sold. That's a drop of about 24%.

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