Houston Area Home Prices (Sugar Land, Katy: how much, new home, construction)

[calien]

Specifically Katy and Sugar Land. How are prices reacting to tough oil market? How far have they fallen from the peak and how much further will they drop (in your opinion)?

[Failed Engineer]

They haven't fallen at all in the nicer areas in both. You are looking at at least 6 months months before prices start to drop at all.

[predatorprey]

Economies do not typically turn on a dime and events events such as low oil prices takes months if not years to play out.

Prices have not started to decline yet as inventories are still extremely low ~2 months if not lower, you may have even seen prices continue to increase. It will take a minimum 6 to 12 months to even get to the area of equilibrium (5 to 6 months of inventory), and it will take a many more months after that before sellers realize they are no longer in a sellers market.

That is just my 2 cp.

[Rip808]

Originally Posted by calien

Specifically Katy and Sugar Land. How are prices reacting to tough oil market? How far have they fallen from the peak and how much further will they drop (in your opinion)?

None in the desirable areas. I still see some homes go in 2-3 days at high prices.

[cheryjohns]

Good houses in SL - nada. Still insane.

Cinco area - still very good. Very good. Very. Good.

In other words, so far - same as last year.

[Zoo2000]

What's interesting in my part of Katy is the price difference between a new construction home vs. 'used' homes. The builders list the homes at $125 - 140/ft. I understand that they will negotiate down (to 115 - 125/ft). Then I see used homes listened for ~ $120 - 130 /ft. I talked with a realtor friend, and the used houses are actually selling at 100 - 110/ft. To me, the gap between used homes and new homes has been greater and greater…used homes have appreciated from 90 to 100 ft in the last 5 years, while new homes have gone from 90/ft to 140 ft…Wow. Based on the comps that I saw from the realtor, I think that market is already cooling down--maybe down to a rational level. We're in Katy--homes aren't supposed to appreciate like they need in the Heights. I am curious to see when the market cooling starts reflecting in new construction prices.

[usc619]

Originally Posted by Zoo2000

What's interesting in my part of Katy is the price difference between a new construction home vs. 'used' homes. The builders list the homes at $125 - 140/ft. I understand that they will negotiate down (to 115 - 125/ft). Then I see used homes listened for ~ $120 - 130 /ft. I talked with a realtor friend, and the used houses are actually selling at 100 - 110/ft. To me, the gap between used homes and new homes has been greater and greater…used homes have appreciated from 90 to 100 ft in the last 5 years, while new homes have gone from 90/ft to 140 ft…Wow. Based on the comps that I saw from the realtor, I think that market is already cooling down--maybe down to a rational level. We're in Katy--homes aren't supposed to appreciate like they need in the Heights. I am curious to see when the market cooling starts reflecting in new construction prices.

You're absolutely correct, which is why I always recommend my friends to stay on the resale side of things for a better deal.

[Rip808]

Yeah, builders have a habit of pricing their inventory homes at ridiculous prices. Then when I go to Redfin you can actually tell what they actually sold for and yes the builders do sell them for under listing price but sometimes its not much more less. I still see new homebuilders in our area have monthly increases in base prices...this surely can not go on forever...