It’s hard to say exactly what’s happening in Port Arasas condo market, but some experts say that the city has been selling condos at a premium for years.
A report from the Real Estate Institute of Texas suggests that the number of condo listings is down 20% since the recession, and that the market is now priced at a discount to comparable markets like Dallas-Fort Worth and Austin.
“The trend is to price condo units at market values,” said Amy Miller, a real estate agent who owns a realtor firm.
“The market is pricing at $1.7 million to $1 million per unit, and a condo is worth a little more than that.”
The report cites a recent report that the average price of a Port Arassas condo was $1,813, a 40% increase over the last five years.
It’s unclear why the average condo price has risen so much, or why so many condos are being sold for so much money.
But experts say they don’t think it’s a coincidence.
“I think that it is because of the recession,” said Kevin Miller, who owns the Miller Miller & Associates brokerage.
“People are realizing that the economy is not working and that prices need to be up to stay competitive.”
Miller & Associates’ Miller Miller Miller says he believes that the condo market has a lot of factors at play.
He says the city is going through a difficult time, with the loss of thousands of jobs.
And he points to a housing affordability issue.
“There’s a huge number of people who can’t afford the housing,” he said.
“There’s just not a lot left for new units.
It is not a housing market that is going to grow, and it’s going to need to get more expensive to attract people.”
We are seeing a lot more of a number of high-end condo owners are choosing to buy and renovate and build their homes,” Miller said.”
Condo buyers have long been complaining about the high price of condos in Port Arnas, and the city says that’s largely due to the recession. “
It’s just that they are being forced to build condos that the current condo market does not support.”
Condo buyers have long been complaining about the high price of condos in Port Arnas, and the city says that’s largely due to the recession.
That has pushed the average home price in Port Aaras down more than 40% over the past five years, according to data from the Texas Association of Realtors.
The city’s latest report, from the city of Port Araras, also shows that the housing supply has remained relatively stable.
In fact, it’s not even clear how many new condos have been built in Port Asaar, as there has been no new construction since 2009.
The new city housing report also highlights how condo owners in Port Austin are paying more for their units, and why that may be a factor in their appreciation.
“This is really an anomaly that we’re seeing, that the price is going up at the same time that supply is going down,” Miller Miller said, “that’s the story here.”
“It is a great story, but it’s also a story that we don’t know the real story,” he continued.
“We’re not seeing any evidence of the supply and demand issues that are driving prices up.”
For a real-estate agent, Miller’s observation is particularly relevant because he’s the guy who is supposed to be helping condo owners navigate their properties.
But in the past year, he’s seen condo sales spike, and prices are currently at an all-time high.
According to Miller, the condos being sold now are the “tremendous anomaly” that is the condo housing market in Port Allen.
“These are units that are on the market that are going to be selling for well over $1 Million,” he explained.
“If you’re not prepared to pay $1M for these units, you’re going to see a lot fewer listings.”
That said, he also pointed out that there is some positive news to come.
“Condo values are starting to rise because of [the housing affordability] issue,” Miller added.
That may not seem like a big deal to some of the people who are buying condos right now, but the average buyer in Port Atascosa is making about $2,500 less than the average owner in Port Loma, which is about 40% higher than Port Aransas.
And Miller says that there are still a lot people out there willing to pay that price.
“They’re looking for something that they can live with for a long time,” he pointed out.
“They’re willing to spend $500,000 or more to move here.”