Home Prices

Condos for Sale
08/24/09 12:25pm

Swamplot Price Adjuster: Woodlands Waterway Faux

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Home Prices, Price Adjuster, The Woodlands, The Woodlands Town Center, Woodlands Waterway
21 Comments

The Swamplot Price Adjuster needs your nominations! Found a property you think is poorly priced? Send an email to Swamplot, and be sure to include a link to the listing or photos. Tell us about the property, and explain why you think it deserves a price adjustment. Then tell us what you think a better price would be. Unless requested otherwise, all submissions to the Swamplot Price Adjuster will be kept anonymous.

Location: 1 Waterway Ct., Unit 4-E, The Woodlands Town Center
Details: 3 bedrooms, 3 1/2 baths; 4,314 sq. ft. in One Waterway Lofts
Price: $1,990,000
History: Just listed over the weekend.

The nominator of this property writes:

Who says the real-estate bubble is long gone? Right on the Woodlands Waterway, here’s a faux Venetian condo in the Waterway Lofts. Can’t you just feel the theme-home synergy? Anyway, it looks like there are some great views of a lot of new office buildings from the windows, and if you look down you can see the Waterway and pool.

Is all that wine included? That might help explain the price tag. That and the fact that the county tax assessment for the loft just about doubled between 2007 and 2008. Montgomery CAD has it at about $1.56 million, which still seems too high.

To be fair though, there are several other overpriced lofts currently for sale in the same building.

In a just world, this condo would rent for maybe just twice its $2,062 monthly maintenance fee, all those Disneytalian finishes would peel off, and you could return all the fixtures to Expo for a refund.

So . . . what would be a better price?

CONTINUE READING THIS STORY

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Buying and Selling
08/19/09 12:39pm

Flushing Foreclosures Through the System: What’s Lurking in the Line?

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Forecasts, Foreclosures, Home Prices, Houston Data, Price Trends
3 Comments

HAR’s real estate sales report for July is out! And Swamplot’s housing-market reader-analyst uses the data to piece together a better picture of Houston’s still-somewhat-mysterious foreclosure scene:

The press releases in 2009 have included a running commentary on the % of foreclosure sales in the month. This month’s release featured an interesting nugget — foreclosure sales from the prior year’s month! It is new information, and a few future monthly releases of it will allow us to fill in the data gap in the graph [above].

The foreclosure graph can be looked at in two ways. The glass half full crowd can cite the fact that a wave of foreclosures has been passed through the system — like a painful kidney stone — and it hasn’t led to piles and piles of unsold homes on top of each other in a negative feedback loop. Inventory is down to 6.5 months, backing this view.

And what if you aren’t sure there’s enough water in that glass to, uh . . . pass those stones?

CONTINUE READING THIS STORY

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Buying and Selling
07/22/09 10:38am

Houston Real Estate in June: Top of the Summer to You!

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Forecasts, Foreclosures, Home Prices, Houston Data, Price Trends
11 Comments

“The increase in local unemployment reported this week is sickening,” reports Swamplot’s local financial correspondent. But don’t the latest HAR numbers show Houston home prices at some sort of record high?

Historically, the peak for home prices comes in July or August every year. The increase in the median and average over the past several months has been due to two factors. First, seasonality –summer prices are always the highest. Second, a change in the “product mix” of Houston homes –the % of foreclosed homes has fallen every month for several months straight . . . So the change in the product mix means that the value of any given house probably has not risen, only a change in the product moving through the system is reflected in the numbers.

Is it okay to get excited about the foreclosures, then?

CONTINUE READING THIS STORY

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Home Prices
07/21/09 4:20pm

MLS in Houston: Mandatory Secret Sales Price Disclosure

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Houston Data, Online Resources, Quicklink
5 Comments

MLS IN HOUSTON: MANDATORY SECRET SALES PRICE DISCLOSURE Responding to reports that home sales prices have been systematically omitted from MLS records in Dallas, a few Houston Realtors tell the Chronicle‘s Nancy Sarnoff that sort of thing can’t happen here: “. . . after a house sells, the price is supposed to be recorded on the Multiple Listing Service by the real estate broker who sold it — a practice that’s hard to get around, in Houston, at least. That’s because agents are bound by MLS rules to report the price or face a $250 fine and possible suspension. ‘If the seller doesn’t want their sales price reported, then they can’t list it in the MLS,’ said Shawn Dauphine of the Houston Association of Realtors, which runs the MLS — a database of listings of homes on the market and those that have sold. Members of the association have access to price data, but the public does not. . . . Over the last 12 months, just three agents in this area were fined for not reporting sale price. The problem is more severe in Dallas because the group that runs the MLS there has an exception in its rules that allows the seller’s agent to report the last known list price in lieu of the sales price, Dauphine said.” [Houston Chronicle; previously on Swamplot]

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Boulevard Oaks
06/29/09 2:48pm

Swamplot Price Adjuster: Boulevard Oaks by the Square Foot

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Hermann Hospital Estates, Home Prices, Homes for Sale, Price Adjuster
23 Comments

Why hasn’t this cute little cottage on South Blvd. in Boulevard Oaks been snapped up yet?

Location: 1930 South Blvd., Boulevard Oaks
Details: 5 bedrooms, 6 full and 4 half-baths; 7,863 sq. ft. on a 10,140-sq.-ft. lot
Price: $2,450,000
History: Original home on property torn down in fall of 2007. Listed for $2.6 million during construction; price cut $150K last Halloween.

Our nominator writes in:

I’ve walked through this home. It’s a vacuous monument to the “price per square foot” itch that’s infected so many builders trying to make a buck in fancier neighborhoods. If you can get $300 a square foot for a 3,000 square foot house, why not build a 6,000 square foot house and double the take? And think of the bonus you could get for 7,863!

So the design becomes a ridiculous exercise in racking up square footage for no useful reason. Most of the experience of this house consists of walking down long, built-to-impress but useless hallways. The master bedroom is big enough to skate in.

This place only looks like a great deal on paper. I hope studying this home will make realtors and builders and buyers and appraisers think twice about applying mindless per-square foot pricing formulas.
Because this is what you end up with.

So . . . how should you price it?

CONTINUE READING THIS STORY

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Buying and Selling
06/26/09 3:45pm

Comment of the Day: Idylwood Appraisal Case Closed

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Comments, Home Prices, Idylwood, Quicklink
4 Comments

COMMENT OF THE DAY: IDYLWOOD APPRAISAL CASE CLOSED “All of you people are batsh!t crazy if you think you can get a house like that in Idylwood for the low $200’s. If houses LESS than 1300 sq ft have been selling for just under $200,000 or $145 to $150+ a foot. Do the math. 500 more sq ft, a second bath that not all of the other sales had and more upgrades for only $10,000 or so more? . . . This house has closed. It sold for $242,000 as well it should.” [Robert, commenting on Idling in Idylwood: Where’s a Friendly Appraiser When You Need One?]

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Comments
06/24/09 2:31pm

Comment of the Day: The Low Price of High Property Taxes

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Home Prices, Houston Data, Quicklink, Taxes
22 Comments

COMMENT OF THE DAY: THE LOW PRICE OF HIGH PROPERTY TAXES “Houston is pretty affordable overall. However, people like to make statements about how affordable the city is and say ‘Prices are low because of __________.’ My point is, property prices are low for a lot of reasons. One of the reasons is that property taxes are high.” [Andrew Burleson, commenting on Houston Home Values: The Property Tax Effect]

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Buying and Selling
06/24/09 11:15am

Fighting the New Appraisal Rules

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Financing, Home Prices, Quicklink
3 Comments

FIGHTING THE NEW APPRAISAL RULES A Swamplot reader draws attention to a “rumored email” purporting to show that the National Association of Realtors is gearing up for a campaign against the Housing Valuation Code of Conduct that went into effect at the beginning of May. The HVCC was meant to safeguard the independence of appraisals — in part by prohibiting loan officers, mortgage brokers, and real estate agents from selecting the appraiser for a particular property. The email, posted on a San Fernando Valley real-estate blog, indicates that the NAR is pushing Congress to impose an 18-month moratorium on the new code. Our reader wonders if recent stories of “unfair appraisals” — such as this one — are the result of a larger “orchestrated campaign” against the new rules. [Effective Demand; Swamplot inbox]

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Home Prices
06/23/09 2:21pm

Houston Home Values: The Property Tax Effect

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Quicklink, Taxes
42 Comments

HOUSTON HOME VALUES: THE PROPERTY TAX EFFECT A few of Andrew Burleson’s conclusions from a comparison of property taxes in Houston, Chicago, L.A., and New York: “When a person buys a $200,000 home in Houston they’re actually making payments worth $273,000 including taxes. When a person in Los Angeles buys a house for $200,000 they’re making payments worth $235,000. It costs the person in LA the equivalent of $37,000 less to obtain the same loan. . . . The greatest irony here is how this plays out at the high end of the market. Because our taxes are so high, the cost to own valuable property becomes significantly higher here. . . . What you can see in the chart is how the actual cost to own a property is much higher than the real value of the property, and how this gap becomes larger as a property increases in value. For instance, if you have enough cash flow to make payments worth $200,000, you can only actually afford about a $150,000 home in Houston. As you look up the scale the difference becomes more ridiculous. $750,000 worth of cash flow actually gets you $550,000 worth of property in Houston – that’s $200,000 in value lost to property taxes. Therefore, if you’re rich, and you’re planning on buying a mansion, you’re better off living in Los Angeles or New York.” [NeoHouston]

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Buying and Selling
06/18/09 4:14pm

Idling in Idylwood: Where’s a Friendly Appraiser When You Need One?

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Home Prices, Idylwood
15 Comments



The Chronicle’s Nancy Sarnoff says low appraisals are becoming the “newest threat” to Houston’s housing market. Her example? The story of the redone bungalow at 6707 Fairfield St. in Idylwood, where the sellers accepted a full-price offer less than a week after the property was listed.

But the appraisal on the 1,780-square-foot home came in at just $206,000. The buyer couldn’t come up with enough cash to make up the difference and [co-owner Derrick] DeCristofaro wasn’t willing to drop the price, so the deal fell through.

Why can’t the appraiser buy that $242,900 asking price?

CONTINUE READING THIS STORY

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Home Prices
06/17/09 10:40am

Well Sprung: That Bounce in May Home Sales

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Houston Data, Price Trends
10 Comments

The May home numbers are in and they’re . . . not so bad, says Swamplot’s chart-wielding commentator:

The “spring selling season” is going well as average home prices are up 21.6% since the beginning of the year. Errrr…ummm….that is a big move and it underscores that there is a strong seasonal trend at work. The big bounce brought us up to slightly above May of last year on a median basis. Positives included record low interest rates and foreclosures were “only” 20% of the total.

Fewer foreclosures is better, right?

A reduction in foreclosure sales is a change in “product mix” and doesn’t reflect on the price of a given home. In prior reports we were encouraged to ignore them, now the lower # of foreclosures is embraced and is cited as “price gains.” The strong seasonal trend is powerful enough to keep the housing “bears” like me silent for a few months. May also featured some of the lowest interest rates in a long time, so buyers were poised to move and lock in lower rates.

CONTINUE READING THIS STORY

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Braeswood
06/15/09 8:41am

Swamplot Price Adjuster: Braeswood Landbank

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Home Prices, Homes for Sale, Price Adjuster
18 Comments

A Swamplot reader thinks this 1959 ranch at the corner of Bellefontaine and Morningside in Braeswood is priced too high — even though the property is listed as “Pending Continue To Show”!

Here’s the scoop:

Location: 2401 Bellefontaine Blvd., Braeswood
Details: 4-5 bedrooms, 4 1/2 baths; 3,748 sq. ft. on a 14,436-sq.-ft. lot
Price: $700,000
History: Currently under contract. Listed as “Pending Continue to Show.”

Our nominator writes:

I was thinking about this property three ways.

It could be sold as a remodel (which would probably require $100K or more just to update surfaces – a little birdie told me, for example, about the bright purple shag carpet in the entire bedroom wing of the house) – if it was an updated large ranch on this prime corner it could probably get close to 800K on a resale IMO. So what would a “flipper” pay for that? I’m guessing in the 500’s.

It could be sold as a teardown. The land value here is good and probably won’t ever collapse, but it will not be generating any income for a couple of years at best. There is way too much inventory in the neighborhood right now (big houses, old houses, new houses, empty lots) for more building to make much sense.

It could be sold as a rental. I’m currently living in . . . a big beautiful ranch house that hasn’t been touched in 50 years. In some ways that’s neat, but in other ways (plumbing, electrical) it is not. So I’d guess the rental income here will be about $2700/month. What would be the math on that for a purchase? I think that would depend on how much cash you put into the house and if you were landbanking it. I’d still end up in the 500s.

So . . . you got a better number?

CONTINUE READING THIS STORY

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Home Prices
06/08/09 11:54am

Introducing the Swamplot Price Adjuster

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Park Place, Price Adjuster
17 Comments

Are you getting the sense that some properties on the market in the greater Houston area are priced a little . . . inappropriately? Then you’ll enjoy the brand new feature Swamplot is trying out. We’re calling it the Swamplot Price Adjuster.

Which properties will Price Adjuster feature? Ones you send in!

Here’s how it works: Send your nominations to Swamplot in an email. Make sure to include a link to the listing or photos. Tell us about the property, and explain why you think it’s worthy of a price adjustment. Then tell us what you think a better price would be. (Unless you request otherwise, all submissions will be anonymous.)

Swamplot Price Adjuster will feature the best submissions, and allow readers to comment on and quibble with the property’s pricing.

Does this sound like an interesting idea? Good, because we’ve already received our first Swamplot Price Adjuster submission, and it’s waiting for your proposed adjustments:

CONTINUE READING THIS STORY

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