Comment of the Day: The City’s Hot Spots and Cool Spots

COMMENT OF THE DAY: THE CITY’S HOT SPOTS AND COOL SPOTS Houston Hotspots“The Houston housing market is really crazy right now. There may be 2.5 months of inventory on the market when you look at the numbers as a whole, but the real issue is some pockets are in demand and some aren’t. I have a buyer who has been looking in one area for months, being outbid when something does come up and after a dozen+ offers is under contract in 24 hours or less. In contrast I have a house across the street from mine that’s been on the market for months. Location is the key and those overall statistics of months inventory don’t paint the whole picture. I am REALLY hoping the spring season sees a flood of people putting their homes on the market but I have a feeling it won’t be as many as needed.” [Tawnya, commenting on What To Do with the Gus Wortham Golf Course; Record Houston Home Inventory Lows] Illustration: Lulu

12 Comment

  • Tawnya, what are the two areas (hot and cold) mentioned in your comment?

  • So your’re saying that all real estate is local?

  • CotD – wow!

    @ Walker – In my comment the area is Bellaire, specifically Willow Meadows / WIllowbend, that I refered to where my buyer’s been struggling to find something. And, unfortunately, is being rapidly priced out of what she wants. The house I mention lingering is in Southbelt / Ellington. Both of them are outside the Loop but one is adjacent and one is barely inside the Beltway.. which obviously is a factor.

    Houston is comprised of so many distinct, different pockets that I’d love to see the months of inventory statistic broken down more precisely, e.g.: Inner Loop, Katy, Woodlands, etc. That would be a much clearer view into the market.

  • I think we can deduce the hottest areas of town, it’s hardly quantum physics…I don’t think I need a detailed survey..

  • Try finding a brownstone in Greenwich Village, Brooklyn Heights, or Park Slope–you think Houston is a tight market?

  • I think inner loop is hot compared to all other places in houston . Key is proximity to the city is the selling point nobody want to drive hrs to get to work ….

  • This is a real eye opening thread. So I think what I can gather from it all is that the inner loop is generally a hot area…and that’s because of its location? Am I close? Very interesting…

  • Query: When you belabor the obvious, does it become more obvious, or less obvious? Discuss amongst yourselves.

  • Tawnya – it’s only for inner loop/westside, but Judy Thompson’s website has a ‘market conditions’ section with a breakdown of months of inventory by zip code by price range. I’d say it was informative, but right now pretty much every one of those zip codes is showing the same thing – almost no inventory.

  • @ longcat – Thank you for the website link. Their breakdown by zip, pricepont and time is incredibly helpful.

    As for everyone saying it’s obvious what the hot spots are? Yes, of course it is if you follow real estate in the city. However, the gist of my original statement is that the overall statistic published of 2.5ish months inventory available “in Houston” can be incredibly misleading to someone not familiar with the different areas. The Inner Loop, and arguably also The Woodlands thanks to the Exxon campus, are becoming entirely different markets than the (incredibly large) rest of the city.

  • Tawnya — I’ve lived in the area where your friend is looking for 29 years.

    In the last 18 months, there’s been an uptick in original owners (from 1955-60 build of the homes) leaving/passing away and those houses are being snapped up, renod, and flipped for close to double what the investment cost was, i.e. a renod house you could have had for $210 K in 2011 is now $310 K +. The price hiking also seems to be happening with houses that have been well maintained but maybe didn’t update the kitchen or bathrooms, so buyers do those and then relist.

    It’s a great place to live, so if your friend is set on it, tell them to keep looking.

  • Once more buyers come to the realization that they are not going to be able to buy in the hot spots in 2014 for 2011 prices, (or even 2013 prices), then I bet we see more areas heat up as buyers are forced to “fan out” in order to find anything remotely close to their price range. I am sure there are still a lot of people thinking if they just hold out, if they just keep looking, that “great deal” in [insert hot inner loop neighborhood name here] will magically materialize, if they can just somehow get the jump on it. Meanwhile, the bar keeps moving and the only “great deal” to be had in these areas is the deal where you actually get your offer accepted, even if it was above asking. The gentrification cycle that lifted up once questionable areas will continue, (and yes, once questionable areas would include places like Montrose, Heights, Garden Oaks and even Bellaire). It won’t be long before we see the last parts of Westbury and Oak Forest getting cleaned up, and points east like Eastwood, Riverside Terrace and Glenbrook Valley all seeing more improvements.