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Buyers might be able to get a good deal on a highrise or midrise condo in this market. But does it make sense to do so?
Here, as Judy Thompson of Just Buyers Houston relates them, are the typical arguments against buying a condo: In Houston the highrise market has never been fully embraced by the marketplace; it remains an investment that, historically, has not resulted in the largest available returns over time. Why? Usually, there’s not enough demand to create supply pressure. And if supply pressure does mount, more properties will likely be built. On top of all that, there’s the dreaded monthly condo maintenance fee.
Recently, Thompson reports, a buyer asked her if she didn’t think that Houston was “trending toward a highrise lifestyle.” [Spoiler alert: She doesn’t.] “I had to point out to him,” Judy notes, “that just because a lot of condo buildings are going up doesn’t mean the market for those units is strong. At best it’s a normal market in the lower price ranges, very much a buyer’s market in the upper price ranges.” Here she’s referring to this chart on the Just Buyers Houston website, reproduced above.
So who should buy a highrise or midrise condo? “If you are a buyer who wants a ‘lock and go’ lifestyle, doesn’t mind that it might not be the greatest investment over time, and can pay the maintenance fees, then it may be right for you,” she says. It’s also possible, Judy notes, that a lot of baby boomers interested in downsizing will be out looking for condos as well.
But having in hand actual data about the market can make you a smarter buyer. As noted above, a chart showing current conditions for the highrise and midrise condo market in 10 price ranges and 4 market areas is available on the Just Buyers Houston website (and displayed in part above). You’ll also find on the site a range of historical data about sales numbers and prices for properties in several popular local Zip Codes. If you’re looking to buy a home or condo in Houston and care about getting accurate information, you’ll want to check out Just Buyers Houston.
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