2017 was a good year, especially for the upper high end market. New construction prices are up and lots are selling about on par with 2016. The middle market has seen some softening, with the exception of “move-in ready” homes. For those not impacted by Hurricane Harvey and flooding it has been business as usual. Flooded homes and lots are hitting the market and are selling at discounts often below land value. Many residents in neighborhoods flooded due to the dam release are rebuilding. What a statement that makes for the resiliency of these lovely neighborhoods. A year or two from now they will be full of beautifully remodeled and new construction homes. It may be a tough year or two ahead but I believe down the road these neighborhoods will shine even brighter after rebuilding.
The Memorial Villages ended the year with steady sales prices, higher inventory (noteably new construction), and strong lot prices. The table above is as of December 11th. There were several year end closings of lot sales at similar prices of the yearly averages. The decline in oil price has not affected lot sales yet.
In the past few months I have seen two homes where the owners added an exterior elevator shaft. In both cases they were nicely bricked on the outside and if you weren’t looking for it you would never know there was an addition. It is a great solution to extend the years you can enjoy your home when the master bedroom is upstairs. Other options are adding a chair lift in the stair well. Look close, do you see what I see? Yes, I’m humming Christmas carols too….”a star, a star…dancing in the night, with a tail as big as a kite” ! This GK listing at 310 Longwoods had multiple offers last week…click on the photo for details.
Normally we don’t see multiple offers in the multimillion dollar price range. This GK listing was the exception. Beautifully decorated by Don Connally of Area (Highland Village) it showed great. My favorite idea was the use of this barn door that adjoins the pool. Open the door and you have additional entertaining area ….ping pong table…or whatever in this one bay garage space. Interesting observation…the home only had a one car garage yet that didn’t keep the buyers from bidding. Just because your home doesn’t have “everything perfect” doesn’t mean it won’t sell. Click on the top photo above for more details.
Yes, home values have escalated greatly this year. I often hear, how long can it continue? Is this a bubble? This bar graph tells us that the upper end market is not currently overbuilt. And based on the scarcity of lots this year, probably won’t be overbuilt in the near term. An important component of our market is the upper end, even if it isn’t your market. The above bar graph shows supply and demand for single family homes in Memorial ranging in price from $2,500,000 to $4,000,000 as of August 31, 2014. The red bars are steady supply….pretty level. The blue bars are homes going under contract, and the green bars are homes that have sold….which appear to be at good healthy levels.
Lots do not become available often on streets like Green Oaks. This one is at the end of the cul-de-sac, just off Blalock. Lovely trees, tranquil setting. Great area for walking; explore both Bunker Hill and Piney Point off Blalock. Memorial Villages police, Memorial Drive Elementary, Spring Branch Middle, and Memorial High. 16,000sf lot priced at $1,175,000. UPDATE: It went under contract in 2 days and closed over list price. As of today, 12/2/2014, it is the highest sales price psf of land of Memorial lots ranging between 10,000 and 20,000sf. And worth every penny! Click on the photo above for more details.
Reynolds Court is the new gated community at the northeast corner of Voss and Memorial is almost sold out. There is one home and one lot available. The home is under construction and is priced at $3.5 million (5 bedroom, 5 full bath, 2 half bath). The lot is the first one on the right hand side when you enter the gate, lot 4. Reynolds Court will have new 6 homes and is in Hunters Creek. This is a lovely unique development and I am amazed at how quickly it has sold.
This home was sold at lot value in January of this year. A 26,400 sf lot with beautiful presentation on the street. Thank you to my friends for referring the owner’s family to me. This was an original owner home custom built in 1954. The owner’s daughter told me they purchased the home for $60,000 in 1954. It recently sold for over $1,000,000……who says real estate isn’t a great investment! The owners had received offers from builders as high as $850,000 before they listed with me and we advertised on MLS.
This year has seen exceptional activity and price increases in our area. The Memorial Villages includes Bunker Hill, Hedwig, Hunters Creek and Piney Point. A quick glance at a similar table about this time last year (my 10/30/2012 post) shows half acre lots increased 12%. Even if you aren’t in the market for a lot, you should be aware of what is happening there as lot prices and availability affect resale and new construction prices too. I am hopeful 2014 will be another strong year!