.

Neighborhoods doing well include:

• Garden Oaks
• Highland Village / Midlane
• Memorial Park
• River Oaks
• Washington East / Sabine

While each neighborhood is different, much of the common growth has been due to:

• The areas did well during Harvey.
• New builders have acquired land and started builder “nicer and larger” homes at higher price points.
• In three of the cases, base land values for the area were lower than adjacent neighborhoods and they’re getting closer to parity.

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:

• Parts of each area experienced heavier flooding than other parts of Houston.
• Material increase in homes “sold at lot value.”
• Higher percentage of homes going through permitting process & renovations than other parts of Houston. (It has been unnerving to some buyers to drive through streets where a lot of renovation work was going on, even if the home they were considering had no water damage.)

We segmented the Houston real estate market into:

• Three main property types (single family homes, townhomes, highrise condos).
• Four main price tiers.

Then, we analyzed this data by comparing the following for each of the 12 segments:

• # of properties sold from Jan – Jun 2018 vs Jan – Jun 2017.
• Current absorption rates.
  • This is the amount of time it would take to sell all of the current inventory, based on the current rate of sales.
  • A balanced market is 5-7 months.
  • A lower number is good for sellers. A higher number is good for buyers.
• 1 year appreciation rates.

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:

• School zoning;
• Close proximity to a major job centers (Downtown, Galleria or Medical Center).
• The Medical Center area has also been in continual high demand.
• Two bedrooms are often easier to resell or rent out, as it can be rented to people with a roommate.
• Access to public transportation (METRORail or good bus lines).
• Try and avoid being right on a railroad or freeway.
• Having a good floor plan matters.

When comparing 2017 results to YTD 2018 data, the trends are very notable, including:

• The Single-family home market has bounced back strongly from the effects of Hurricane Harvey. Usually (and provided the property is in an area that has no history of flooding and is near top Houston schools), the larger the lot the better for resale value. (See Best Houston Neighborhoods In Land Value Appreciation.)
• Sales of Luxury townhomes $1M+ remained flat, while movement townhome properties in the $500k – $1M slowed down slightly. One notable trend: townhomes within Houston’s Best Gated Communities continue to sell well.
• Highrise developers have nearly doubled Houston’s inventory of condos available. This has hurt resale in a number of buildings (especially specific, mostly older, buildings with high HOA fees). (See Guide to Houston Condos HOA Fees & Amenities.) Historically the condo market normalizes when supply & demand reach equilibrium. (See Best Houston Condos In Appreciation.)

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:

• Luxury condos ($500k+)
• $250k-$500k condos
• $1M+ Single family homes in non flooded parts of neighborhoods that had some water (many buyers are “throwing the baby out with the bathwater.”)

Right now, in Houston, it’s a good time to be a seller of:

• Single family homes in hot neighborhoods with good school zoning (West U, Heights, Oak Forest)
• $100k – $250k townhomes in areas close to the major job centerss
• $100k – $250k single family homes

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.

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Notable Highlights:

• Neighborhood with the largest appreciation, on average, benefited from:
  • Doing well during Hurricane Harvey.
  • Material increase in new construction home sales (e.g. Builders bought teardowns, and built new, large and expensive homes).
  • Close proximity to the major job centers.
• Neighborhoods with the largest declines, on average, suffered from:
  • Hurricane Harvey flooding.
  • Material increase in homes “sold at lot value.”
  • Reduced buyer demand. (Some buyers “won’t even consider anything at all, even close, to any area that flooded.”)

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.

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.

• Source data from Houston Association of Realtors Multiple Listing Service.
• Data deemed reliable but not guaranteed and should be independently verified.
• Segment data based on MLS sold properties in areas 2,4,9,16,17,22,23,24. Comparisons data is all based on median sold price per square foot.