Top U.S. markets for price growth in condos

From Realtor.com

Despite the effects of today’s economic challenges on the nation’s housing market, local metro areas throughout the country are delivering strong median sales price growth on condominiums, representing better buying opportunities especially for first-time home buyers, based on the most recent Existing-Home Sales quarterly report from the National Association of Realtors.

Here are the top markets:

Dallas-Fort Worth-Arlington: The Dallas-Fort Worth-Arlington area led the country with a double digit increase in median condo prices (+11.1%) during Q3 of 2008, compared to Q3 of 2007.(1) Unemployment was at 5.7% in November of 2008.(2) The median income was $64.8K.(3) Historically, this area has had the sixth highest GDP among the 363 MSAs in the nation.(4) For around $150K, buyers can purchase a 3 Bed, 2.5 Bath home with around 1500 square feet of space.

Bismarck, ND: Bismarck was the only other metro area with a double digit median price gain (+11.0%) in Q3.(1) It had the second lowest jobless rate in the nation (2.6%),(2) with many residents employed in the healthcare industry, a sector that has been impacted less by the recession than other industries. The median income was $64.4K(3), the second highest of the six featured cities. Bismarck also has a very pro-business local government(5) that supports the success of its many self-employed residents. With a population of just 97.4K, it delivered the 68th lowest GDP in the nation as of the last government report.(4) Buyers can expect a median condo price of $148K(1) that will buy a 1750 sq ft home with 2 Beds and 2 Baths.

Houston-Baytown-Sugar Land, TX: This area came in third among the six on our list with a healthy 8.1% increase in median condo prices during Q3 of 2008.(1) It did slightly better than its northerly neighbor in the area of unemployment, reporting a 5.5% jobless rate in November of 2008. The median income is lower than the Dallas area, however, at $61.1K.(3) It has outranked Dallas in GDP in the past, with the fifth highest in the nation.(4) More condo for the money is available here. More spacious 3 Bed, 2.5 Bath homes, are being offered for around $135K.

New Orleans-Metairie-Kenner, LA: Real estate is gaining ground in New Orleans during the ongoing recovery from Katrina. The median home price increased by 7.7% during Q3 of 2008(1) as buyers take advantage of historically low prices. This area had 4.9% unemployment in November of 2008.(2) The median income was $59.8K.(3) Historically, this area has had the 41st highest GDP among the 363 metropolitan statistical areas (MSA) in the nation.(4) For $172K, buyers get a 1 Bed, 1 Bath, 450 Sq Ft flat on historic Burgundy Street.

Rochester, NY: Rochester offers the second largest economy in New York State, next to the Big Apple, a fact that may be helping condo prices during the recession.(1) Known as the world capital of imaging, it commands a substantial share of imaging and optical science in the local market and universities. Rochester had 5.9% unemployment, the highest among the markets listed but still well below the national unemployment rate of 6.5% (2). The median income was $63.5K.(3) Rochester had the 52nd highest GDP in the nation as of the latest report.(4) The median condo price is $121K,(1) making it one of the most affordable of the US metro areas experiencing a median price increase (+5.8%). At about that price, expect to buy a 2 Bed, 1 Bath Townhouse offering around 1100 Sq Ft.

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD: This area has the highest median price point of our top six. A 1 Bed, 1 Bath high rise condo with 600 Sq Ft of living space and a city view can be had for the local median price of $207K.(1) Philly is the sixth most populous city in the US with the seventh largest GDP in the nation, as of the latest report.(4) Like Rochester, NY, unemployment was at 5.9%(2) but the median income was also the highest of the group at $74.3K.(4)

Source: Realtor.com

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