Memorial Real Estate

[Guest danax]

Memorial mystique continues to captivate both builders and buyers

Thora Qaddumi

Houston Business Journal

1-28-05

Winding westward, Memorial Drive has lent its name and its mystique to a variety of neighborhoods, including the prestigious Memorial Villages -- six incorporated townships located in an 11-square-mile area bisected by Interstate 10.

"Values are holding" in all of the neighborhoods, including the close-in area just west of the 610 Loop, the villages, Sandalwood, and West Memorial subdivisions all the way to Highway 6 and even beyond, says John Daugherty of John Daugherty, Realtors.

"We're in a stable market for all the good areas in Houston. The farther out you go, the more house you get for your money. But all of these areas have held their own. The market throughout Memorial is stable and healthy," he says.

In 2004, 77 homes were sold in Hunters Creek Village, 75 in Bunker Hill Village, 74 in Piney Point Village and 36 in Hedwig Village. Real estate professionals are calling it a buyer's market.

"The inventory in the villages is down from a year ago," says Greenwood King Properties Inc.'s Nancy Younger, who was the lead agent for the founding of the firm's Voss office in 1990. "In December 2003, there was a 5.5-month supply of inventory. In December 2004, there was a 4.7-month supply."

New construction

In recent years, many of the sprawling ranch-style homes built 40 or 50 years ago in the villages, Sandalwood and close-in Memorial have been torn down and replaced with giant multistory mansions priced in the millions. A few builders have had sales of speculative constructions priced in the $3 million range.

"Buyers want something brand new that hasn't been lived in," Daugherty says. "There has been a tremendous amount of tearing down. There used to be a lot more homes on acreage -- two or three lots. The new houses are more likely to be built on one lot."

Home values are highest in three of the wealthy villages south of I-10 -- Hunters Creek, Piney Point and Bunker Hill. Piney Point permits only single-family homes on a minimum lot size of a "village acre" -- 40,000 square feet. Hunters Creek covenants allow homes on lots no less than 22,500 square feet.

"People are really hunting for land to build on," Younger says. "There's competition between builders and individual home buyers who are looking for these sites. In the villages, the $500,000 to $800,000 market is very slim. Many of these homes are going to sell for the lot. It's a tough entry."

"Tear downs" on a village acre are priced in the $1 million range, and half-acre lots are going in the $500,000s and $600,000s, says Memorial and Spring Branch custom home builder Rudi Midani, founder of Silverwood Builders Inc. Last year, Midani sold one of his spec homes for nearly $2.9 million.

"The location is very important, and it's highly speculative to build in this market. I wouldn't advise a lot of builders to go into it -- although there are buyers," he says. "To build a new house in the villages costs in excess of $180 per square foot."

And prices are rising. Younger has a house scheduled to close in the mid-$600,000s, which she says a year ago would have sold for under $600,000.

Remodeled homes

West of the villages and Sandalwood, the changes are more likely to be seen in the interiors than the facades of the homes.

"The farther out you go -- particularly past Beltway 8 -- the more you see homes being extensively remodeled rather than torn down," Daugherty says.

Whereas the village image is of high-end custom homes on wooded lanes with almost a rural atmosphere, the West Memorial image is of well-maintained one-, 1-1/2- and two-story traditionally styled homes and a smattering of soft contemporaries, 25 to 40 years old, in stable, professional neighborhoods.

There are manicured, tree-shaded lawns, curbs and gutters, upper-scale controlled-access townhomes and occasional new constructions.

"Farther out, there are more choices. It's still a brisk market. Homes are staying on the market only about 60 days," Younger says. "There are only a few neighborhoods with large home sites, but there are nice, older homes on the market for $300,000 to $550,000."

The close-in neighborhoods north of I-10 have also been transformed as, street by street, builders and developers have built homes that more closely resemble the estate-sized homes in the Memorial communities south of I-10 than the less costly homes of many of their Spring Branch neighbors.

Important to Memorial and the areas north of I-10 is the accessibility to downtown Houston -- 10 miles east of the villages -- and the Spring Branch Independent School District schools, which serve most of the area.

The six Memorial Villages -- Bunker Hill, Piney Point, Hunters Creek and Hedwig, located south of I-10, and Spring Valley and Hilshire, located north of I-10 -- take pride in their individuality. All six share a fire department and a common police department serves four of the villages. (The other two maintain their own police departments.) But the residents' mailing address is "Houston."

During the 1930s Houston equestrians often rode through forested acres in these areas, and Houstonians who grew up in the area fondly remember when it was common to see horseback riders who had stables on their Memorial estates.

Those days are gone, but, says Daugherty, "one of the nicest trends is that a lot of young families are buying homes in Memorial."

tqaddumi@bizjournals.com

[sttombiz]

does someone know where I can check the avg housing appreciation rate of the memorial area (77024 and 77079) besides for calculating the numbers on HCAD and har.com? is there a site which measures the appreciation rate of areas in Houston?

[jlt1988]

Look here: http://www.westurealestate.com/appreciation.htm. I think the Chronicle also has this data by subdivision.

[sttombiz]

Thanks.

[ekarl17]

What makes the memorial area so affluent, despite of the huge lots, and nice homes. To which all of them lead to nice families to move in, and then the schools turn out to be nice too. But what else? I mean what if I'm developing a new master-planned community, what should I do to make my new master-planned community in to a new memorial area?

[sttombiz]

you need around 60 years of good press.

memorial is an established community and thats what makes all the difference. new master planned communities just need time and thats something that takes well...time.

[Houston1stWordOnTheMoon]

Memorial communities are also pretty centrally located. That helps a great deal in its success.

[TJones]

Remember, that when Memorial was built, it was NOT "centrally located", it was considered "The Boonies", but alot of oil execs and the like were moving out that way so their families wouldn't have to be around the hustle and bustle of the city and they were building all those fantastic homes, with each new one being built getting larger and better. "You gotta keep up with the Joneses" you know, and Memorial was and IS the hotbed for that. Hedwig Village, Bunker Hill, Hunter's Creek and places like this in the Memorial area, have their own police departments, and heavily enforce their HOA rules. They try very very hard to keep the riff raff OUT of their territory, these are just a few of the things it takes to keep your property values continuously going UP ! Mature lots, excellently kept up homes, and variety in those homes,not cookie cutters, help keep the market and property values up also.

[lolita66]

What makes the memorial area so affluent, despite of the huge lots, and nice homes. To which all of them lead to nice families to move in, and then the schools turn out to be nice too. But what else? I mean what if I'm developing a new master-planned community, what should I do to make my new master-planned community in to a new memorial area?

My inlaws moved "way out there" to the Memorial area (now it is Hunter's Creek) back in the early 50's. They bought a couple of acres, but later subdivided. We recently inherited the home, which is on 3/4 acre. The Memorial Villages are like living in a small town. I also like that it is zoned -- no convenience stores or strip shopping centers on every corner. It's hard to believe that you're living inside a huge city. It's very quiet. I love all the trees, and the other poster was right about them keeping up with the deed restrictions. The police force is very responsive, and I can say that I feel safe.

[FilioScotia]

My inlaws moved "way out there" to the Memorial area (now it is Hunter's Creek) back in the early 50's. They bought a couple of acres, but later subdivided. We recently inherited the home, which is on 3/4 acre. The Memorial Villages are like living in a small town. I also like that it is zoned -- no convenience stores or strip shopping centers on every corner. It's hard to believe that you're living inside a huge city. It's very quiet. I love all the trees, and the other poster was right about them keeping up with the deed restrictions. The police force is very responsive, and I can say that I feel safe.

The rise of "Master Planning" is the reason we will never see anymore areas like the Memorial villages built anymore. Admittedly, some of the newer neighborhoods around Gessner and Memorial and points west were "planned" in the 1950s, but the early villages closer-in developed pretty much piece-meal as people bought land, built houses and moved in. And yes they were very far out in the country when that started back in the 20s and 30s.

That's why much of Memorial doesn't have the cookie-cutter look and feel so characteristic of "Master Planning" -- little boxes all made out of ticky tacky that all look just the same. It's also why it's still possible to find some very large properties there in the heart of Memorial.

[sttombiz]

the memorial area was gift of land from memorial park to hwy 6. it was master planned as was the woodlands.

the bering family owned the land which was bordered by i-10 to the north, voss to the west, westheimer to the south, and chimney rock/silber to the east.

it was all flood land and rice farms before the build up. there is only one stretch of memorial which looks semi-bad and thats from dairy ashford to kirkwood, but holm is planning on changing that by creating center medians with mature trees, etc.

also something which should have not been done was the army core of engineers re-structuring of buffalo bayou. its like a straight line from hwy 6 to the beltway and then it starts to look better.

but if you want to build a new in memorial tear down/screw over the low income housing residents which are bordered by i-10 to the north, tully to the west, memorial to the south, and bateswood to the east and construct a new residential community. the apartment owners are looking to sell...

[The New Juniper]

Memorial is so expensive because the Villages are their own incorporated entities. They go to Spring Branch Independent School District which has a great reputation. Along with the reputation are high taxes to support the good schools. It is expensive to live there which weeds out the masses. Builds on itself....

[sttombiz]

its even more expensive to live outside of the villages in the energy corridor area.

the tax rate jumps to around 3.29 from 2.9-3.0 because of Katy ISD

[Boris]

but if you want to build a new in memorial tear down/screw over the low income housing residents which are bordered by i-10 to the north, tully to the west, memorial to the south, and bateswood to the east and construct a new residential community. the apartment owners are looking to sell...

I'm all for tearing down all the old apartments. I hope that's true that the apartment owners are looking to sell.

[lolita66]

The rise of "Master Planning" is the reason we will never see anymore areas like the Memorial villages built anymore. Admittedly, some of the newer neighborhoods around Gessner and Memorial and points west were "planned" in the 1950s, but the early villages closer-in developed pretty much piece-meal as people bought land, built houses and moved in. And yes they were very far out in the country when that started back in the 20s and 30s.

That's why much of Memorial doesn't have the cookie-cutter look and feel so characteristic of "Master Planning" -- little boxes all made out of ticky tacky that all look just the same. It's also why it's still possible to find some very large properties there in the heart of Memorial.

Many of the master planned communities have houses that all look the same. Cookie-cutter is right. You're right -- people would go out and buy land in Memorial and build their houses. There isn't another house that has the same floorplan. Little by little, the older homes are being sold, then torn down, and huge houses are built on the lot. As long as the lot is big enough for that size house, I don't mind. I just don't like huge houses that barely fit on the lot.

[PureAuteur]

Cookie cutter housing isn't necessarily bad, just most of it is. It's the lack of architectural style that makes most cookie cutter homes in suburbia cheap, that and the fact that they are small and cheaply built.

In San Francisco, they have streets lined with houses that are all exactly the same, but because of the cost of living in the city and the homes being architecturally pleasing and well built, they retain value.

[westguy76]

Cookie cutter housing isn't necessarily bad, just most of it is. It's the lack of architectural style that makes most cookie cutter homes in suburbia cheap, that and the fact that they are small and cheaply built.

In San Francisco, they have streets lined with houses that are all exactly the same, but because of the cost of living in the city and the homes being architecturally pleasing and well built, they retain value.

what qualifications do you have to determine if a house is cheaply built? How would you know anyways how well a particular block of houses is built in suburbia. There are lots by the way, and lots of builders, so don't tell me I know someone who.... blah

So you think there are more well built houses in the city than the new or newer ones built in suburbia with new building codes, standards, and public demand for better building standards?

so all houses in suburbia are small too?

And they don't have any architectural details?

and cookie cutter. I am learning alot here, thanks.

sounds like you are generalizing and to no good effect.

I get tired of the same retorict, where do you live? We can't all live in memorial by the way?

The rise of "Master Planning" is the reason we will never see anymore areas like the Memorial villages built anymore. Admittedly, some of the newer neighborhoods around Gessner and Memorial and points west were "planned" in the 1950s, but the early villages closer-in developed pretty much piece-meal as people bought land, built houses and moved in. And yes they were very far out in the country when that started back in the 20s and 30s.

That's why much of Memorial doesn't have the cookie-cutter look and feel so characteristic of "Master Planning" -- little boxes all made out of ticky tacky that all look just the same. It's also why it's still possible to find some very large properties there in the heart of Memorial.

little boxes of similar looking ticky tacky?

[Houston1stWordOnTheMoon]

I have news for you. The cookie cutter look has moved in The street i grew up on is now home to some very monstrously large Medit. styled homes. That hideous Medit mess is spreading like a bad cancer. My parents have right around 2 acres there and im sure they will be getting calls to sell and divide soon.

[PureAuteur]

I'm thinking of a particular type of cuttie-cutter housing when I think of the bad ones. I'm thinking of really small homes like the ones out on 529 or in the north Katy area that sell for 80 or 90k, very close together, all brick exterior, with no stylistic detail and no architectural value. I'm just guessing they're cheaply built, because they build them so quickly. If there were quality workmanship involved it should take much longer to build. I'm saying that some types of cookie-cutter development can be nice and desirable.

I tend to prefer custom homes though, such as the ones in the Memorial Area. I honestly have not seen any cookie cutter homes anywhere in the Memorial area, unless we're talking about little enclaves of patio homes and town homes here and there.

[The New Juniper]

I have news for you. The cookie cutter look has moved in The street i grew up on is now home to some very monstrously large Medit. styled homes. That hideous Medit mess is spreading like a bad cancer. My parents have right around 2 acres there and im sure they will be getting calls to sell and divide soon.

if you parents have 2 acres in Memorial, i'll buy....

[KatieDidIt]

What makes the Memorial area so affluent, despite of the huge lots, and nice homes. To which all of them lead to nice families to move in, and then the schools turn out to be nice too. But what else? I mean what if I'm developing a new master-planned community, what should I do to make my new master-planned community in to a new memorial area?

Well first you have convince masses of old Houston families to move to a master planned community.....that will never happen. Master plans have no exclusivity or privacy, which Memorial/Tanglewood has in the droves. Its a hard thing to give up. Also, master plan communities have a huge transient population, so pride in "THE neighborhood" never establishes.

So for starters: no strips malls,gas stations, apartment complexes, full acre wooded lots, private patrols or a neighborhood loyal police department, several exclusive membership clubs, close to town,incredible schools, great culture and resturants, great pride in the neighborhood and families that live there for generations....so yeah, there will never be another Memorial. But if you can tap into a few of those things, maybe you will create something that will be nice.

JUST NO STRIP MALLS!

Thank you

[Wide Eye]

Well first you have convince masses of old Houston families to move to a master planned community.....that will never happen. Master plans have no exclusivity or privacy, which Memorial/Tanglewood has in the droves. Its a hard thing to give up. Also, master plan communities have a huge transient population, so pride in "THE neighborhood" never establishes.

So for starters: no strips malls,gas stations, apartment complexes, full acre wooded lots, private patrols or a neighborhood loyal police department, several exclusive membership clubs, close to town,incredible schools, great culture and resturants, great pride in the neighborhood and families that live there for generations....so yeah, there will never be another Memorial. But if you can tap into a few of those things, maybe you will create something that will be nice.

JUST NO STRIP MALLS!

Thank you

Fonn Villas and Memorial Meadows are pretty close to the "strip malls". The community has retained its value well, hasn't it?

[KatieDidIt]

Fonn Villas and Memorial Meadows are pretty close to the "strip malls". The community has retained its value well, hasn't it?

Fonn Villas has appreciated in the past few years, mostly from families willing to live in older homes on smaller lots to get into those SBISD school. But the lots are so tiny, they aren't the true "Village Acre" Memorial homes I think the poster was asking about. I always called the area around the beltway and west, Memorial Extra Light.

PS- I think the prices in Fonn Villas and Frostwood are over inflated at this point. But you never know, Houston keeps on trucking.

[copgo]

What do you guys think about this house ?

http://search.har.com/engine/dispSearch.cf...mp;backButton=Y

To me, the front wall and garages look out of place.

Thanks.

[nativehou]

What do you guys think about this house ?

http://search.har.com/engine/dispSearch.cf...mp;backButton=Y

To me, the front wall and garages look out of place.

Thanks.

I can't understand why anyone with $1.7 million would want to spend it on a home where the main architectural feature -- as seen from the street -- consists of three garage doors.

[TheNiche]

I can't understand why anyone with $1.7 million would want to spend it on a home where the main architectural feature -- as seen from the street -- consists of three garage doors.

When garage doors are perfectly perpendicular and very close to the street, it conserves on the size of the footprint of the driveway, which otherwise costs money and takes up land that could've been used to increase the home's size or provide for a larger total yard size.

Those that will buy the house will live in the house; those that do not live in the house only drive by it. To a builder, the only person that matters is the buyer. He does not care that the neighbors would have prefered that the builder waste money and land so that they might be able to free-ride on a pretty view.

[MidtownCoog]

Good lord, young man! Nobody asked for a cost analysis. Copgo simply asked what people think about the house.

I think it's a bit boring for the price. And the the stucco/brick/tile combo seems to have an identity crisis. Why cheap-out with stucco?

[nativehou]

Then I'll rephrase: I, myself, would never spend $1.7 million on a home where the main architectural feature -- as seen from the street -- consists of three garage doors.

[TheNiche]

Good lord, young man! Nobody asked for a cost analysis. Copgo simply asked what people think about the house.

I think it's a bit boring for the price. And the the stucco/brick/tile combo seems to have an identity crisis. Why cheap-out with stucco?

I wasn't responding to Copgo.

But I do agree with you that it is boring for the price.

Then I'll rephrase: I, myself, would never spend $1.7 million on a home where the main architectural feature -- as seen from the street -- consists of three garage doors.

Nor would I, but then we aren't in the target market.

[nativehou]

Nor would I, but then we aren't in the target market.

If anyone reading this is in the target market and willing to say so, please put in your two cents.