Saturday, July 26, 2014 • Page 1B
Street side changes
Top: New home construction, such as these soon-to-be homes in the Heights, are booming right now. Bottom: Homes in Garden Oaks, similar to the one below, are in high demand now. File photos)
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Demands for homes in Oak Forest, Heights and Garden Oaks increase By Cynthia Lescaleet For The Leader
Crazy. Smokin’ hot. Frenzied. That’s how real estate experts describe the current housing market in many Leader neighborhoods. Prospective buyers might add “frustrating” or “wrenching” to that lexicon; so many listings quickly snag an offer – make that several offers, particularly on properties located on prime blocks. Low interest rates and a tight housing inventory that’s still rebounding from the dearth of building activity during the sluggish 2008-2011 economy contributed to the current conditions, explains Melodie Matlock of Oakington Realty. Mostly, though, it’s demand for a close-in location, a range of neighborhood price points and access to freeways -- despite the reconstruction, saidCheryl Palmer Oldweiler of Better Homes and Gardens Real Estate Gary Greene. The area is “almost selling itself,” she said. In 10 years? “It’s going to continue to be a desirable area,” Matlock said. The builders will have caught up with demand and interest rates will have ticked up, affecting supply and budget-sensitive demand. Also, higher density housing will continue to make inroads, though it will cluster near (but not in) single family subdivisions with deed restrictions, she said. Without them, expect tighter housing that’s still single family. (Shady
Acres is a harbinger.) Look for more mid-rise apartments and townhome projects. “In 25 years? Who knows where it’s going,” said Billy Hartman of Hartman & Associates. He has his suspicions, however. “We’ll see very few original homes.” And the new ones will be a lot more expensive, he noted. Property owners already feel the effects of that when they get their tax assessments: “They’re shocked it has gone up so much.” PRICE CREEP In some neighborhood pockets, new construction has already crossed a pricing threshold nearing -- or even at – the million-dollar mark. The wave of larger new builds, however, is no longer concentrated on prime blocks within Oak Forest, Houston Heights or by well-ranked schools, Hartman says. Builders already have headed into subdivisions west of White Oaks Bayou and points north. And they’re finding plenty of homesteaders fol-
lowing. “It’s opening up all over,” Hartman said. “The tipping point (of change) is now block by block.” Or even lot by lot, Oldweiler quips. In 10 years, she predicts most homes in most of the older sections of Oak Forest -- those falling in the 77018 zip code – will have been replaced. The new ones will represent a cross-section of architectural styles. She expects the quick, dramatic escalation in prices will likely trigger a deeper market for custom homes, particularly 10 to 25 years from now. Still, “not everyone wants - or can afford -- a mammoth home,” she said. “I believe there is still a healthy market for mid-sized homes” under 3,000 sq. ft., whether built that size originally or updated at some point with extra space. DO THE MATH Buyers seeking original homes to freshen up or overhaul for modern living often find themselves racing builders for suitable properties, she
said. Meanwhile, rising prices appear to have deterred “flippers,” who previously flocked to the area to rehab time-worn properties for a quick sale. The teardown trend took hold about five years ago, Hartman said. That it continues ought to caution renovation-minded homeowners. His advice: “Be careful. You’ll only get lot value for it one day.” Matlock suggests a rule of thumb for calibrating potential improvements: “The price of a property times three is generally the price of a new home. If the neighborhood can support that, be careful.” DRIVING FORCES Buyers include adults returning to their childhood communities, seniors moving into smaller homes to be closer to their now-grown children (and grandkids) and investors, many of whom already live in the area and see long-term value, the agents say. The market’s biggest drivers remain young adults seeking a place to nest -- and a yard, whether for current pets or future children, Hartman said. Interestingly, he has noticed how friendship circles are having a “me, too” effect on home sales in some neighborhoods. “Typically, buyers want homes to be ‘move-in ready,’ but are thinking how, in a few years, they can add value to the home or tear it down and build new,” Oldweiler said. “Even if they don’t stay at the same address for decades, most choose to stay in the See MARKET, P. 2B
Question: With area housing inventories being so low, and housing prices at all-time highs, what direction do you see the market taking for those first time home buyers who can’t compete in the high end buying arenas? Any suggestions to help them find that first home? It’s important that homebuyers, especially those searching for a more affordable, or lower price point resale, contact a lender to obtain pre-qualification or pre-approval. Together with their lender, they can determine their affordable price range. Understanding the buyer’s price range will also help their realtor narrow their search. With inventory levels down, buyers must act quickly when submitting an offer. Submitting a pre-qualification or pre-approval letter, along with a clean contract and a personal letter to the sellers, can sometimes make the difference in the buyer’s contract getting accepted. Gerry McCurry, Realtor CNE
Better Homes and Gardens Real Estate Gary Greene Buyers typically think of Garden Oaks, Oak Forest, and the Heights as the place to be. Guess what? There are some wonderful subdivisions so close by. Mangum Manor, Forest Pines, Forest West, Ella lee Forest, Shepherd Park Terrace, Pinemont Park, Shepherd Forest. These are all wonderful neighborhoods, affordable (right now), & deed restricted & close in. Prices are going up in these areas too, so don’t wait too long. First time home buyers should be aware that this will not be their home forever. Five years is the average time spent in your first home. Don’t buy above your
means so that when it’s time to move up, you will have nice equity to get you into that dream home. Pat Walker With area housing inventories being so low, and housing prices at all-time highs, what direction do you see the market taking for those first time home buyers who can’t compete in the high end buying arenas? Any suggestions to help them find that first home? Unfortunately is seems many first-time buyers looking in the less than $150,000 price range are going to continue to struggle with availability issues. According to a study report by metrostudyreport.com the issue
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OPINIONS is statewide as many builders from the sub $150,000 market are moving to the higher profit margin $300,000-$499,000 dollar market. A majority of my buying clients are first-time home buyers and the very first suggestion I always make is for them to talk with a loan officer and get pre- approved, which is much different from pre-qualification in that it is a much more intensive look at your finances and application. In return it provides you with a solid idea of the loan you are able to receive and as added bonus gives you the image of a much more
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