Houston’s Mid Year 2018 Real Estate Market
So, What Has Really Happened To The Houston Real Estate Market Post Hurricane Harvey & Tax Reform?
So, What Has Really Happened To The Houston Real Estate Market Post Hurricane Harvey & Tax Reform?
As we’re approaching the one-year anniversary of Hurricane Harvey, Houston real estate has experienced several large factors that could impact our market:
In an effort to evaluate how the market has changed, we’ve compared trends on 12 different segments of the real estate market and analyzed sales data from 52 Houston neighborhoods.
There are a few big unknowns that we’re watching and there is not enough data to extrapolate what this means for the future of home values:
It’s a good time to be a buyer of:
It’s a good time to be a seller of:
.
Neighborhoods doing well include:
While each neighborhood is different, much of the common growth has been due to:
In the table below, you can see where sales are lower or slower. While each neighborhood is different, much of the common issues are related to:
We segmented the Houston real estate market into:
Then, we analyzed this data by comparing the following for each of the 12 segments:
Historically, low- to mid-priced properties in close proximity to major job centers (e.g. Downtown, Medical Center or Galleria) have sold very well. (See Best Houston Neighborhoods in Appreciation.)
Single-family homes continue to dominate the Houston housing market, with 2018 sales of SFH in the $500k-$1M and SFH in the $100-$250K range outpacing its numbers from last year.
In addition, here are some of the key success themes for the three property types that appreciated the most over the past 10 years:
When comparing 2017 results to YTD 2018 data, the trends are very notable, including:
Please contact me if you’re interested in seeing how your home, neighborhood or area of interest has performed over the last decade.
The absorption rate shows how many months it will take to sell out the current supply of homes available (excluding any new listings) based upon the current rate of sales.
As a sample, if there are 10 homes for sale on your block, and 1 home sells every month, then there are 10 months of inventory (e.g. it should take 10 months to sell all of the homes on your block.)
5 – 7 months is a “balanced market.”
A smaller number is better for sellers. A larger number is better for buyers.
Right now, in Houston, it’s a good time to be a buyer of:
Right now, in Houston, it’s a good time to be a seller of:
In an effort to highlight the trends amongst different parts of the city, we analyzed 52 Houston neighborhoods.
CAVEAT: The 2018 data below looks at sales between January 1 – June 30, 2018. In some of the smaller neighborhoods the data is not as statistically significant as others (e.g. in small areas a few “big” sales will change the averages more than in large areas.) We compare the total sales price, in each area, between Jan – Jun 2018 versus the full year 2017 data. We used full year 2017 data so it was more statistically significant and update these trends bi-annually. If you have any questions about your neighborhood, contact me.
Below, please find the change in median home prices of selected Houston neighborhoods.
.
Notable Highlights:
.
Disclaimer: The neighborhoods below do NOT represent the full list of Houston areas that recorded positive (and negative) sales trends the past year. The list follows no specific order. The neighborhoods listed were picked to highlight the areas that did well (and poorly) the last 12 months.
2018 Median Land Value Price / Sq Ft: 13%
2018 Median Price / Sq Ft: 9%
2018 Median Home Price: 27%
Garden Oaks has been consistently among Houston’s Best Performing Neighborhoods.
Garden Oaks is a neighborhood of approximately 1400 homes located north of the North Loop (610), and bordered by Ella Blvd. to the west and Yale St. to the east.
Nestled among towering pines and grand magnolias, Garden Oaks feature cottages, bungalows, ranch, and traditional-style homes.
Garden Oaks is near enough to main districts making daily commutes a breeze, and yet far enough for the residents to enjoy a private and quiet neighborhood.
Oak, pecan, and pine trees tower over homes in Garden Oaks. Massive lots (median lot size is 12,000 square feet) with lush yards compliment the tree-roofed neighborhood.
Garden Oaks 10-Year Real Estate Appreciation
2018 Median Land Value Price / Sq Ft: 23%
2018 Median Price / Sq Ft: 11%
2018 Median Home Price: 22%
Highland Village is a deed-restricted residential enclave located about 6 miles west of Downtown Houston.
Located along Westheimer and a stone’s throw away from Southwest Freeway and Loop 610, Highland Village has convenient access to key Houston areas like the Galleria, Museum District, Downtown, and the Medical Center.
The neighborhood has plenty of shopping options nearby: the Highland Village Shopping Center, Central Market, Galleria, Uptown Village, and Rice Village.
From vintage single-family homes from the early 50s to new construction custom-built homes, Highland Village offers a great selection. Surrounded by some of the most expensive neighborhoods in Houston, Highland real estate are slightly more affordable than those in River Oaks and Afton Oaks.
Highland Village 10-Year Real Estate Appreciation
2018 Median Land Value Price / Sq Ft: N/A%
2018 Median Price / Sq Ft: -6%
2018 Median Home Price: 18%
The historic Memorial Park, a sprawling 1,400-acre green space, is home to one of Texas’ top municipal golf courses, miles of multi-use trails, and various sports and outdoor facilities.
Nestled south of I-10 and east of Loop 610, the Memorial Park area is one of the most popular neighborhoods within the Inner Loop.
The 18-hole municipal golf course covers 300+ acres, and features a golf museum, a clubhouse, a lighted driving range, and putting and chipping greens. First opened in the 1920s, Memorial Park Golf Course today welcomes more than 60,000 visitors every year. The John Bredemus-designed course has a 73 course rating and a 122 slope rating. (See Houston’s Best Golf Course Communities)
Memorial Park residents have easy access to the park’s many sports facilities, including a croquet court and sand volleyball courts. The park’s various sports fields can be used for rugby, softball, baseball, and flag football. The Memorial Park Tennis Center features 18 hard courts, while the Memorial Park Fitness Center offers an indoor swimming pool and exercise equipment.
Memorial Park is known for its many trails, varying in size (from small paths to wider roads), surface (from paved to rougher sections), and degrees of difficulty (color coded from easy to advanced). Mountain bikers, nature trekkers, joggers, and skaters frequent specific trails, including the popular Picnic Loop and the Seymour Lieberman Exertrail. Most Memorial Park neighborhoods have direct access to the park’s trails.
2018 Median Land Value Price / Sq Ft: -24%
2018 Median Price / Sq Ft: 14%
2018 Median Home Price: 12%
Home to CEOs, celebrities and the wealthy, River Oaks is Houston’s most expensive and exclusive neighborhood.
Forbes, Fortune, and The Wall Street Journal have featured River Oaks in their rankings: “Best Places To Live,” “Top Places to Live Well,” “The (Multi) Millionaire’s Haven.”
With a median home price of over $2.5M (and estates $10M+), River Oaks is Houston’s Most Expensive Neighborhood. River Oaks Elementary is one of the best schools in Houston (or anywhere in Texas). The area also boasts great access to premier private schools.
River Oaks is one of the Hottest Neighborhoods in the Inner Loop. Centrally located, residents have easy access to all major job centers including Downtown, The Medical Center and Galleria.
Based on Land Value Appreciationand Real Estate Appreciation reports, River Oaks is one of the top performing neighborhoods over the past decade.
Retail and entertainment venues, including River Oaks Shopping Center, Highland Village, and the Galleria, are minutes away from River Oaks homes. Multiple restaurants, boutiques, bars, and lounges also line Westheimer and San Felipe. Residents can also take a short drive to Montrose, downtown, or Upper Kirby for more options.
Concerned about a housing market crash? Worried about missing out on a boom? SUMMARY: Coming off a record…
Thanks to HGTV, your listing only has 8 seconds to capture a buyer's attention. Summary The Houston Properties…
Over 134,000 people move to Houston each year. Keller Williams' unparalleled nationwide and international reach puts your home…