House Hunt

Zillow reveals key opportunity for first-time homebuyers in hot Dallas market

House hunting? Consider a condo.

Photo by Davel5957/Getty Images

With Dallas poised to be one of the nation's hottest housing markets this year, finding your first home is becoming increasingly challenging. But a new analysis from Zillow identifies a key area of real estate that could afford big opportunities to those trying to break into the market for the first time.

In 2020, single-family home sales soared (both nationally and locally), but condo sales were left behind, the real estate authority says.

While single-family home inventory dropped, condo inventory recovered and rose, and the national median condo sale price rose just 7-8 percent year-over-year, compared to single-family home prices growing by14 percent. Another bonus: condos generally are priced lower than single-family homes(in November, the median-priced U.S. condo sold for about $41,000 less than a home).

“Condos provide a unique opportunity for prospective buyers looking for a foot in the door, especially in markets where house prices have risen out of reach or where proximity to urban centers is a priority,” says Nicole Bachaud, economic data analyst at Zillow, in a release.

In Dallas-Fort Worth, condo inventory declined only slightly year-over-year, and local condos sold for far less than single-family homes. Here are the highlights of the DFW metro area's condo market, according to Zillow:

In November, the median sale price for a condo was $206,150, $97,183 less than for a single-family home.
Condo sale price was up 2.6 percent year-over-year in November, compared to 11.7 percent for a single-family home.
In December, condo inventory was down only 2.1 percent year-over-year, while single-family home inventory dropped 32.8 percent.

Zillow's report shows a similar trend in other top Texas markets. In Houston, the median condo price was $149,633 in November, a significant $117,533 less than the price of a single-family home. And in red-hot Austin, condo inventory actually increased year-over-year by 20.8 percent in December, while single-family inventory decreased 35 percent.

“In scorching-hot markets like Austin, competition for single-family homes is extreme. Prices in desirable locations may feel like they are climbing out of reach for first-time homebuyers, but condos are often an affordable alternative to large single-family homes," Bachaud says.

"Their lower prices and shared amenities, like landscaping and roof maintenance (a few items that can carry shocking price tags for new homeowners) can help a first-time buyer ease into homeownership and begin to build equity. As home values rise over time, these buyers can trade up to something bigger in just a few years."

Bachaud notes that mortgage rates are at near historic lows, which can help ease monthly costs, but she reminds that condos typically come with HOA fees that should be considered when calculating monthly expenses. And, while "shared amenities like a pool or gym aren’t exactly popular during the pandemic, [they] should regain their luster as the virus is contained."

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House For Sale

Dallas house for sale from the '50s is still in original condition

Courtesy

9203

There's a house for sale in East Dallas that's increasingly hard-to-find: a well-preserved home from the '50s for sale that's in nearly original condition.

The house is located at 9203 Lindaro Ln., just outside Loop 12 and walking distance to Bishop Lynch High School, in a stable neighborhood of homes build in the mid 1950s.

The listing by Bryant Nieves of Elite Real Estate Texas calls it a "beautifully preserved Mid-Century gem" with original hardwood floors in the downstairs bedrooms, a recently installed roof, a modern sprinkler system, and an upgraded AC unit.

There are multiple living spaces with a formal living & dining area, eat-in kitchen, and family room which includes an office nook with built-in desk. It has both a carport and attached 2-car garage, as well as a fully fenced yard.

Most of the homes in this neighborhood are 1,200 to 1,600 square feet, and priced from $250,000 to $350,000.

This house was built in 1957, but it differs in that it has a second-floor add-on over the garage — making it roomier at 2,202 square feet, with 5 bedrooms instead of the usual 3.

The two bathrooms are in original condition with '50s tile, both in good shape. The main bathroom has pale warm tan tile, almost flesh colored; the second bathroom, off one of the bedrooms, is a little prettier, with white tile and green-tile edging. Both are far superior to granite-look ceramic.

While both bathrooms merit admiration, this house is more about the wood. There are

original hardwood floors, all in great shape
wood doors including closet doors
wood paneling in the family room, with wood bookshelves and a build-in wood desk

There's also an odd wooden bookshelf that serves as a divider of sorts in the stacked formal living room.

The only room that looks unoriginal is the kitchen, which boasts white-washed '80s cabinets. It looks clean and functional, even if it does not match modern tastes.

Courtesy

Facade of 9203 Lindaro is pleasing, thanks to the unpainted brick.

It sits on a 7,535 sqft lot and the asking price is $395,000 — a bit optimistic, even if they find the rare buyer who sees value in an untouched '50s home.

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