Comments on: Latest Greenwood King Report: On the Double! http://swamplot.com/latest-greenwood-king-report-on-the-double/2009-04-14/ Houston, Texas real estate development, home buying, landscape, and design Sat, 21 Nov 2009 08:20:59 +0000 http://wordpress.org/?v=2.6.3 By: Angostura http://swamplot.com/latest-greenwood-king-report-on-the-double/2009-04-14/#comment-25192 Angostura Tue, 14 Apr 2009 17:29:07 +0000 http://swamplot.com/?p=8212#comment-25192 Interesting numbers, esp. the Heights. Since the numbers aren't like-for-like, I wonder how much of the drop is due to developers changing the type of houses they're building. A lot of the new construction there is right on the cusp between conforming and jumbo mortgages. The maximum conforming loan at an 80% LTV translates to a selling price of just over $520k. Given the current interest rate premium on jumbo mortgages, new-builds that are just a little over this amount are tending to languish on the market, whereas those in the sub-$500k range seem to still be selling briskly. If I were a developer planning on putting up some $600k+ houses, I might re-think my plans and target buyers who can take advantage of the current low rates for conforming loans. Interesting numbers, esp. the Heights. Since the numbers aren’t like-for-like, I wonder how much of the drop is due to developers changing the type of houses they’re building. A lot of the new construction there is right on the cusp between conforming and jumbo mortgages. The maximum conforming loan at an 80% LTV translates to a selling price of just over $520k. Given the current interest rate premium on jumbo mortgages, new-builds that are just a little over this amount are tending to languish on the market, whereas those in the sub-$500k range seem to still be selling briskly.

If I were a developer planning on putting up some $600k+ houses, I might re-think my plans and target buyers who can take advantage of the current low rates for conforming loans.

]]> By: Inner Loop Realtor http://swamplot.com/latest-greenwood-king-report-on-the-double/2009-04-14/#comment-25189 Inner Loop Realtor Tue, 14 Apr 2009 17:04:24 +0000 http://swamplot.com/?p=8212#comment-25189 What's to snark? I'm not with G-K, but the numbers look about right. It would be helpful to know how the boundaries are defined for 'Heights'--though their quote for number of sales 1st quarter '09 vs 1st quarter '08 looks close to what I'm using. As of this morning, single family homes listed up to $500,000 in the 'Heights' (using keymaps for the general area) have about 7.2 months of inventory; over $500,000 have about 15.1 months of inventory. There is still business to be done. Sellers must offer a superior product--no more 'let the buyer paint it, let the buyer change the tile, let the buyer re-finish the floors, fix the foundation/A-C, etc.' At the same time, buyers must realize that desirable areas like the Heights don't have foreclosures and short sales dragging down the value and prices. Reasonably conservative offers will find positive responses . . . if the seller really has to move. What’s to snark? I’m not with G-K, but the numbers look about right. It would be helpful to know how the boundaries are defined for ‘Heights’–though their quote for number of sales 1st quarter ‘09 vs 1st quarter ‘08 looks close to what I’m using.

As of this morning, single family homes listed up to $500,000 in the ‘Heights’ (using keymaps for the general area) have about 7.2 months of inventory; over $500,000 have about 15.1 months of inventory.

There is still business to be done. Sellers must offer a superior product–no more ‘let the buyer paint it, let the buyer change the tile, let the buyer re-finish the floors, fix the foundation/A-C, etc.’ At the same time, buyers must realize that desirable areas like the Heights don’t have foreclosures and short sales dragging down the value and prices. Reasonably conservative offers will find positive responses . . . if the seller really has to move.

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