celiene Posted June 26, 2009 Share Posted June 26, 2009 Hello Y'all I am wondering out loud here....we have friends who "finally" sold their house in The Woodlands( took quite a while) and are looking at townhomes in nice nabes in the loop.......... Now, they have been actively looking since 2007 both going to open houses on their own---and having a realtor show them some units Well, we all know that in 2007--prices were high in the more desirable nabes in the loop---and out to the beltway---for that matter By mid-2008, prices seemed to level off, and even go slightly down........ Credit crunch didn't help matters, and prices continued to drop slightly By late 2008, early 2009 people just stopped putting their houses on the market---as offers were fewer and farther between ( that is the word of a high producer in Houston--inner loop office) which is understandable--if you don't need to sell--don't try to.......cause it ain't pretty out there right now..... Well, they are wondering if they should just rent the next year---because they have had two decent offers that they placed on townhomes "Completely turned down" One was in West Haven Estates--listed at 599K--they offered 565K---due to some work that they know would need to be done---and of course, they figured the homeowner's would reply with a higher price BTW--This is a "Cash Deal" The owners completely turned it down--stating that townhomes in the little gated alcove where they live have gone for 620K--yah, bigger units, and that was back in 3/2007----it just isn't the same economy now, as it was then......... I "personally" think that their listing agent lead them astray---as this townhome had an "open house" this weekend---and I, the endless Real Estate follower ( bored I guess--) went to "check out this camp....." The listing agent ( holding the house open) asked me what I thought.... It is over-priced--got the comps to back it up She told me "It will go for the high five's" It has already been on the market for 105 days I told her "Not in this economy", as similar units down the street ( both complexes are north of San Felipe---pricier than south of San Felipe) have gone for in the low five's.........all comp's from 1/2009 till current Well, to say the least---this realtor placed me on her "flurf-list" Okay, moving on......West Haven must not be the "place" for them..... Upper Kirby area ( not to be confused with the upper Kirby area that sits right next to River Oaks, you know, streets like Fairview, Spann, Welch--where you can't touch "nothing" for under 800K--unless it is small, strange etc.) Townhome is offered at 649K, they offer 609K, based on the prices per sq ft. that have sold recently ( there is nothing special about the house to justify the higher price) owner comes back at 645K................. On the market for 120 days...... Even if either of these deals would have "gone thru" local comps would work against appraising the home for the purchasing price--if there was a mortage needed for the purchase of the home...... They are giving up for now ( so someone is missing out on selling their home to a good buyer) and will go into a High-rise and rent for awhile....as they need to be out of their house in 3 weeks.... So, my question to all you real estate professionals, hobbiest, investors.. Is Houston still over-priced? My guess, yes, by about 10%, or in some places.....more Nobody wants to end up "Upside down" this time next year, as we do have another decent size round of mortages re-setting this fall, which, most likely will cause home prices to "move south" yet again..... Opine away Quote Link to comment Share on other sites More sharing options...
rbarz Posted June 26, 2009 Share Posted June 26, 2009 on townhouses maybe...I don't think they ever were for homes (in the good inner loop neighborhoods). Quote Link to comment Share on other sites More sharing options...
RedScare Posted June 26, 2009 Share Posted June 26, 2009 I have not found evidence that prices in the desirable inner loop neighborhoods have moved south. Flattened, but not south. Not, that I wouldn't try to fake a seller into thinking it, but I think the number of transactions has gone south, not the prices. Quote Link to comment Share on other sites More sharing options...
TheNiche Posted June 26, 2009 Share Posted June 26, 2009 When the summer selling season is over, I anticipate prices declining somewhat. I'm not saying that we'll have a catastrophic California or Florida type situation, by any means, however. Quote Link to comment Share on other sites More sharing options...
Yankee_in_TX Posted June 26, 2009 Share Posted June 26, 2009 When the summer selling season is over, I anticipate prices declining somewhat. I'm not saying that we'll have a catastrophic California or Florida type situation, by any means, however.Based on my new found 'expetise' in the sub $300k market, I agree with the above. Prices have leveled, and I've found many homes are selling for well below asking. Homes started moving around May, and from what I have heard and read come end/late August is that it'll go back to being flat with homes selling well below asking.(for example - we FINALLY have a contract, if you take into account the list price up until the end of May (there was a $10,000 price drop), we're $21,000 below asking)My personal speculation is that many people bought during the boom, and can't come to terms with selling during the bust. Quote Link to comment Share on other sites More sharing options...
KatieDidIt Posted June 26, 2009 Share Posted June 26, 2009 (edited) Based on my new found 'expetise' in the sub $300k market, I agree with the above. Prices have leveled, and I've found many homes are selling for well below asking. Homes started moving around May, and from what I have heard and read come end/late August is that it'll go back to being flat with homes selling well below asking.(for example - we FINALLY have a contract, if you take into account the list price up until the end of May (there was a $10,000 price drop), we're $21,000 below asking)My personal speculation is that many people bought during the boom, and can't come to terms with selling during the bust.I think the "hot" areas are still same. Prices are flat, but not dropping. Areas that fringe the "hot" neighborhoods(maybe a street away) are slightly lower.Most people in the desired neighborhoods just aren't selling. Inventory is rather low, so that pushes the prices to remain at the same level. But I have seen neighborhoods whose values have actually gone up about 5%, but I think that's due to the school district. Edited June 26, 2009 by KatieDidIt 1 Quote Link to comment Share on other sites More sharing options...
goastros Posted June 26, 2009 Share Posted June 26, 2009 I think the desirable areas are going to maintain--not overpriced. We sold our Heights house within $5K of asking price in this economy. I can't afford to live in River Oaks but that doesn't mean it's overpriced. You can't always go by comps. If everyone always sold for the same price as comps, there would never be high and lows. Basically, it sounds as though your friends have not found "the one" or they would make an offer that both they and the sellers could live with (maybe not the exact price they want to pay, but one they can live with). Buying real estate is about negotiation and if they are offering their highest and final offer the first time, their real estate agent is setting them up for failure. Quote Link to comment Share on other sites More sharing options...
20thStDad Posted June 26, 2009 Share Posted June 26, 2009 I agree that prices are holding steady, volume has just gone significantly down. It makes sense, you don't jump to sell in a down economy. I do the exact same searches as back when we were looking in late 2006, early 2007, and almost nothing comes up with the same criteria. People are sitting tight, which I think is fine. That's what we're doing, wait til all this nonsense blows over and people stop freaking out. Quote Link to comment Share on other sites More sharing options...
sid113 Posted June 26, 2009 Share Posted June 26, 2009 I would not feel comfortable buying an expensive townhouse in this market. If things do go south for real estate in Houston these will be the hardest hit, plus I do not see a lot of value or appreciation potential there. But I think single family inner loop homes on decent lots are not overpriced and are unlikely to show much weekness. Unless you are looking for a house over $750K, your inner loop choices - particularly if you are picky about the neighborhood - really are fairly limited. That said, if you are offering within 5% of the asking price I am surprised you are having much of a problem striking a deal... Quote Link to comment Share on other sites More sharing options...
Native Montrosian Posted June 26, 2009 Share Posted June 26, 2009 How much house do they need? Do they specifically want a townhouse? Some friends looked at a place recently on Mount Vernon about 2100 square feet for around $315K, I think. And I know there are newer townhouses in Midtown about 2500 sq. ft. for less than $400K because an empty-nester client just sold a home and moved to one. Quote Link to comment Share on other sites More sharing options...
celiene Posted June 27, 2009 Author Share Posted June 27, 2009 First off, I want to Thank everyone for taking the time to reply to my query You guys are great........ Sid113, and RBarz- I agree with you, as my concerns are with the townhome market, not single family homes in good nabes--A house is always your best investment---but maybe out of reach, price wise, for some.....so Townhomes are your next option--and of course--there "ARE" alot of townhomes in the inner loop area( whether they are on the market, or not currently is "moot" to the long time investment/value issue at hand here.....)--so you need to "shop wisely" and try to purchase something that makes it ( the townhome) stand out a bit from the rest--little bit of a yard ( not just a "Dog-run--LOL!!) good position in the nabe ( let's not back to a main road, here) or you just might not see enough appreciation to warrant all the maintance and upkeep(and said expense) homeownership entails....... Katie, Yes, schools always are an issue in family friendily areas--and I'm sure they are helpful in inner loop townhome areas, too---but I tend to think that someone in say, Camp Logan, knows if they live there with school-age children--that private school(s) "Might" be the best option............. The Niche, I also agree that prices see a bit of a decline once the "high season" is over...this happens even in decent markets--but nothing like the California , or Florida decline GoAstros, I don't think River Oaks is over priced--but, as you say--comps vary greatly there--and that is based on the fact that some of those homes are well, just sooo custom, and others really are not In areas with several townhomes with similiar features--a basic "price for sq. ft." is going to emerge, and then indiviual chartacteristics( upgrades,updates,location within area, lot size--if any) will affect the final price.... Native Montrosian--I think they are looking at around 3k sq ft, or so--they need that much, as they have 3 grown kids, with grandkiddies who will visit from time to time......I don't think Midtown would work out for them--as it might be a bit too "rowdy" for them--they are pushing the big "6-0".... RedScare, and 20th Street Dad--the Heights is the Heights--what can I say?---some folks would never live elsewhere and pay a premium to do so--if they have to.................they will I don't "think" anyone is trying to "fake" sellers into thinking prices have dropped/adjusted anymore than they really have--as most sellers are quite savvy, as are most buyers....... There maybe be less sellers/homes on the market, but there are also way less buyers, especially with "good credit" to purchase those homes--it is a buyer's market--like it, or not.... I'll "bite the bullet" here, and take the truth serum.......If I had not brought the lot in which my house in West U is built on prior to 2002( the money is in the land over in my nabe--housing varies greatly) I could quite likely be somwhat "upside down" right now.......as I finished building during the "high season" mid-2008............... Quote Link to comment Share on other sites More sharing options...
UpperWestEnder Posted June 27, 2009 Share Posted June 27, 2009 I have to agree with RedScare that prices have leveled. The builder I bought my town home from built four sets of six 2bd/2.5bath, 1620 sq. ft. units from 2005 through 2007. Beginning at $199,900 in 2005 each iteration thereafter he raised prices until the final units constructed sold for $241,900 in August, 2007.Building stopped and no units were re-sold between August, 2007 and May, 2009. Then Memorial Day weekend two of my neighbors put their homes on the market each listing for $239,900. One home sold after only 7 days on the market. My other neighbor had 30 people look at the home and received an offer (which she's accepted) after five weeks.Selling your home at or near asking within 6 weeks in this economy is pretty good, however, the sale price hasn't increased (in fact is slightly off) from the 2007 market peak.Volume has dropped and prices are flat for two years now, but I've seen no drop in prices. Quote Link to comment Share on other sites More sharing options...
Seeker Posted July 14, 2009 Share Posted July 14, 2009 The truth as stated the "the value is in the Land". There was a bunalow, that sold in the 1600 block of Kipling, last month for $450,000. There was four offers on the first day of the listing, and it sold. I don't think people buy townhomes, because they can not afford a house., it's other reason's,maybe they don't want a yard, or something, beats me. Plus as I look at the HCAD, it's the land value, that increases, the lots on the 1400 block of Bonnie Brae, close to Richmond & Montrose, are around 275,000. I would never buy a townhome, or condo, if I could buy a lot with a house on it. Quote Link to comment Share on other sites More sharing options...
Porchman Posted July 14, 2009 Share Posted July 14, 2009 The truth as stated the "the value is in the Land". There was a bunalow, that sold in the 1600 block of Kipling, last month for $450,000. There was four offers on the first day of the listing, and it sold. I don't think people buy townhomes, because they can not afford a house., it's other reason's,maybe they don't want a yard, or something, beats me. Plus as I look at the HCAD, it's the land value, that increases, the lots on the 1400 block of Bonnie Brae, close to Richmond & Montrose, are around 275,000. I would never buy a townhome, or condo, if I could buy a lot with a house on it.Well, I think that there are a couple forces here. 1) Glut of townhouses. If you can buy new for slightly more than used, what do you think the average buyer is going to do, particularly when they might get to choose a few final finishes that they can build into their loan? I think townhouses are selling, but the used units are a bit harder to move...not impossible, though.2) Price point: I think the conforming limits have a greater impact now than they have over the last several years. I've observed (casually, albeit) that the smaller homes here in the Heights (in good condition) are still demanding strong prices and clearing the market quickly, while some larger homes are listed a bit longer. Does anybody have some MLS breakdown capabilities to, say, look at sales of homes 2000(+)SF and 2000(-)SF? This would include days on market, approximate reduction off original list, etc. Quote Link to comment Share on other sites More sharing options...
Seeker Posted July 14, 2009 Share Posted July 14, 2009 (edited) Well, I think that there are a couple forces here. 1) Glut of townhouses. If you can buy new for slightly more than used, what do you think the average buyer is going to do, particularly when they might get to choose a few final finishes that they can build into their loan? I think townhouses are selling, but the used units are a bit harder to move...not impossible, though.2) Price point: I think the conforming limits have a greater impact now than they have over the last several years. I've observed (casually, albeit) that the smaller homes here in the Heights (in good condition) are still demanding strong prices and clearing the market quickly, while some larger homes are listed a bit longer. Does anybody have some MLS breakdown capabilities to, say, look at sales of homes 2000(+)SF and 2000(-)SF? This would include days on market, approximate reduction off original list, etc.The banks play some part, as far as what properties they will loan on. I understand condo's, they check out the whole building, if there are several forclosures, forget it. Plus builders now have to presale, something like 70% of the Units. As far as homes, older ones good condition, sell for 1/3 to 1/2 of the new ones, 450-550, new 900+. I know back in the 80's(recession) the banks, had a ratio, of something like 60/40, building/land. If the land was worth more, then, most banks would not refinance, or issue a loan. But my point is, some are harder to sell because of the difficulty in arranging financing,during these times. Edited July 14, 2009 by Seeker Quote Link to comment Share on other sites More sharing options...
UpperWestEnder Posted July 14, 2009 Share Posted July 14, 2009 Well, I think that there are a couple forces here. 1) Glut of townhouses. 2) Price point: I think the conforming limits have a greater impact now than they have over the last several years. You're absolutely correct Porchman. Regarding point #1 south of I-10, north of Washington, east of Patterson and west of Yale there wasn't a single new townhouse under construction, so the buyers saw no glut and had no option, if he or she wished to live in that area except to buy resale.Regarding point #2, there are few newer properties inside the loop for sale for less than $240,000. I make no bones about why I live where I do. After looking at over sixteen properties the West End Parra home simply was the lowest price per square foot for a two bedroom with a two car (non tandem) garage ITL. If you go west of Patterson, you'll find a slew of brand new town homes for sale, but they're over $300,000. 1 Quote Link to comment Share on other sites More sharing options...
Yankee_in_TX Posted July 14, 2009 Share Posted July 14, 2009 I also agree. After viewing 50+ properties, about 80% new construction, the only two we saw that really felt like a 'home' to us were resale. We looked at many places that were wonderful with the upgrades, but either a) felt like an apartment or freestanding but 1600 or fewer sqft. The two places listed under $275 that were over 2200 sqft were both resale (excluding foreclosures). Quote Link to comment Share on other sites More sharing options...
celiene Posted July 30, 2009 Author Share Posted July 30, 2009 The truth as stated the "the value is in the Land". There was a bunalow, that sold in the 1600 block of Kipling, last month for $450,000. There was four offers on the first day of the listing, and it sold. I don't think people buy townhomes, because they can not afford a house., it's other reason's,maybe they don't want a yard, or something, beats me. Plus as I look at the HCAD, it's the land value, that increases, the lots on the 1400 block of Bonnie Brae, close to Richmond & Montrose, are around 275,000. I would never buy a townhome, or condo, if I could buy a lot with a house on it.I didn't mean to make it sound like all Townhome owners only buy Townhomes due to finances, many choose to go that routeI would not buy a free standing home on my own, as I do not want the up-keep, it is hubby's need and wish for the houseBUT--"Most" ( I said "most", not all) townhomes are more affordable than most free standing homes in Houston, so if priceis an issue, but you still wanna be close-in, it's a viable choice.........Value's in the land will mostly likely always be true in the inner loop, as there is only so much land available Quote Link to comment Share on other sites More sharing options...
gardener06 Posted July 31, 2009 Share Posted July 31, 2009 When the summer selling season is over, I anticipate prices declining somewhat. I'm not saying that we'll have a catastrophic California or Florida type situation, by any means, however.Do you still think this will happen inside the loop? We are hoping to buy before the end of the year. I noticed mortgate prices inched up today and wondered how that might affect things. Quote Link to comment Share on other sites More sharing options...
Yankee_in_TX Posted August 4, 2009 Share Posted August 4, 2009 Do you still think this will happen inside the loop? We are hoping to buy before the end of the year. I noticed mortgate prices inched up today and wondered how that might affect things.First time home buyer or not a factor? Quote Link to comment Share on other sites More sharing options...
gardener06 Posted August 5, 2009 Share Posted August 5, 2009 First time home buyer or not a factor?First time. But would rather buy the right house than buy something just to get the tax credit. Looking for the holy grail with all the things we want. Pretty sure it doesn't exist, except at exhorbitant prices. Quote Link to comment Share on other sites More sharing options...
brian0123 Posted August 5, 2009 Share Posted August 5, 2009 (edited) Native Montrosian--I think they are looking at around 3k sq ft, or so--they need that much, as they have 3 grown kids, with grandkiddies who will visit from time to time......I don't think Midtown would work out for them--as it might be a bit too "rowdy" for them--they are pushing the big "6-0".... You don't know Midtown, my friend. Here's a townhouse in Midtown on the non "rowdy" side that has been on the market for awhile, is 3200 sq ft, and insanely close to Baldwin Park. They are also a short bike ride away from Discovery Green, Minute Maid, Herman Park, Museums... and also a five minute walk to the light rail. As they get older... the place is also elevator ready. I live down the street and love this part of Houston that not many people know about. Edited August 5, 2009 by brian0123 Quote Link to comment Share on other sites More sharing options...
celiene Posted September 13, 2009 Author Share Posted September 13, 2009 You don't know Midtown, my friend. Here's a townhouse in Midtown on the non "rowdy" side that has been on the market for awhile, is 3200 sq ft, and insanely close to Baldwin Park. They are also a short bike ride away from Discovery Green, Minute Maid, Herman Park, Museums... and also a five minute walk to the light rail. As they get older... the place is also elevator ready. I live down the street and love this part of Houston that not many people know about. Oh, I know Midtown very real well, my nephew lives there-he likes it very much Mid town is not for them, it just is what it is Some people prefer the color Red, some people prefer the color Blue............... All things happen for a reason: They located a great townhome in the Upper Kirby area that they drove by---it had an open house They figured they could not afford anything in this area---but were pleasantly surprised by the price, AND the listing agent "no BS".................... Smooth Transaction---very nice nabes All's well that ends well, and the high-rise complex was able to rent out their rental unit ASAP, so they did not have to pay out their lease to get out of it so that they could move into their new home.... Quote Link to comment Share on other sites More sharing options...
thect Posted October 2, 2009 Share Posted October 2, 2009 I have seen some sellers willing to negotiate and others are not. I would not give up after two offers. Personally I would not buy with cash now rates are below 5. You might be able to get better than than in a cd in a few years. Quote Link to comment Share on other sites More sharing options...
Ms. Pris Posted October 24, 2009 Share Posted October 24, 2009 Prices in the Heights and Montrose are still high with no sign of drop. However, a LOT of new construction in those areas is sitting empty. I live in Shady Acres, and new construction is empty all around me. Older houses are still selling high in Montrose and Heights.Midtown and the nice parts of 3rd Ward were selling very low in summer and I wish my partner had been gung-ho about buying then. However, he didn't get in fear til fall, when the homebuyer credit was already raising enthusiasm and prices. Quote Link to comment Share on other sites More sharing options...
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