More condos across the US are seeing pending sales are fall. However, not nearly as in Florida and Texas. 

In Houston, for example, condo inventory is up 35.9% and sales are down 35.3%. This has caused prices fall 6.5% across Texas. 

The market inFort Worth has seen listing increase by 65.4%. Yet, sales have fallen 33.3%. 

Meanwhile in Dallas, the number of condos for sale has skyrocketed to 61.7%. The San Antonio market has seen a jump of 58.3%. Where as Austin has only increased by 28.6%. 

Why Condo Crisis Fears Are Gripping Texas

There are several reasons why demand for condos is cooling in the Lone Star State. 

Frequent and intense natural disasters in Texas are a major factor in surging home insurance costs. In turn, this contributes to surging HOA fees in condo buildings. Thus, these maintenance costs are passed on to unit owners.

Those rising costs and the danger of being caught in a natural disaster are scaring off condo buyers. These fears are also motivating owners to sell.

Texas has been hit by extreme weather this year. The state has seen the largest wildfire in the state’s history and flooding. Texas has also been hit with tropical storms and deadly Hurricane Beryl.

Real estate investors have also backed off from buying condos. Instead, those who bought the properties to rent them out a few years ago are now trying to dump them. 

Texas and Florida have also been building more new homes than anywhere else in the country. This has lead to a pile-up of unwanted condos as buyers bail on buying condos.

HOA fees are creating a problem in Houston because of insurance rates. As a result, prices have plummeted. 

‘This could lead to widespread foreclosures, plummeting property values, and a ripple effect throughout the local real estate market.’

Read More About Pending Condo Crisis On MFI-Miami.

Read More About What Is Going On In Florida Below:

Florida Faces A Catastrophic Real Estate Crisis