Crazy Home Prices in Midtown / Montrose / West U (Houston, Bellaire: real estate, apartments)

[kimpurcel]

I can't help but notice how crazy some home prices have been here in Houston inside the loop, even with the oil downturn and the accelerating number of job losses. Homes that cost $200,000 just 5 years ago are now going for $500,000 (zip codes 77019, 77002, 77004, 77006).

I wanted to ask the board if anyone can weigh in on this. What are your thoughts? Is this trend going to continue? Where do these buyers come from? I didn't know Houston had so many rich folks - I am thinking of quitting my minimum wage job and focus on becoming a real estate agent instead. Just scoring one $500K transaction would've had my whole year's salary taken care of.

Thanks
-Kim

[SuperPollito]

Originally Posted by kimpurcel

I am thinking of quitting my minimum wage job and focus on becoming a real estate agent instead. Just scoring one $500K transaction would've had my whole year's salary taken care of.

That would probably be a useful endeavor regardless of whether prices are currently inflated or not.

[Jack Lance]

Originally Posted by kimpurcel

I can't help but notice how crazy some home prices have been here in Houston inside the loop, even with the oil downturn and the accelerating number of job losses. Homes that cost $200,000 just 5 years ago are now going for $500,000 (zip codes 77019, 77002, 77004, 77006).

I wanted to ask the board if anyone can weigh in on this. What are your thoughts? Is this trend going to continue? Where do these buyers come from? I didn't know Houston had so many rich folks - I am thinking of quitting my minimum wage job and focus on becoming a real estate agent instead. Just scoring one $500K transaction would've had my whole year's salary taken care of.

Thanks
-Kim

You will have to come back in 5 years and check out the prices of the same homes in the same zip-codes to see if "This trend will continue". I hope it does , but we will see....

[elnina]

Originally Posted by kimpurcel

I can't help but notice how crazy some home prices have been here in Houston inside the loop, even with the oil downturn and the accelerating number of job losses. Homes that cost $200,000 just 5 years ago are now going for $500,000 (zip codes 77019, 77002, 77004, 77006).

I wanted to ask the board if anyone can weigh in on this. What are your thoughts? Is this trend going to continue? Where do these buyers come from? I didn't know Houston had so many rich folks - I am thinking of quitting my minimum wage job and focus on becoming a real estate agent instead. Just scoring one $500K transaction would've had my whole year's salary taken care of.

Thanks
-Kim

Demand. People like to live in those zip codes and they will pay for it.

[Texas Ag 93]

I think in most major cities, the desirable, updated homes in urban neighborhoods are always among the most expensive. I certainly don't think this is unique to Houston. And some of the neighborhoods mentioned have always been the most expensive real estate in town (West U). Montrose was starting to turn before I moved away back in 2001, but I would probably agree Midtown is a relatively new phenomenon.

[WRM20]

Originally Posted by kimpurcel

I can't help but notice how crazy some home prices have been here in Houston inside the loop, even with the oil downturn and the accelerating number of job losses. Homes that cost $200,000 just 5 years ago are now going for $500,000 (zip codes 77019, 77002, 77004, 77006).

I wanted to ask the board if anyone can weigh in on this. What are your thoughts? Is this trend going to continue? Where do these buyers come from? I didn't know Houston had so many rich folks - I am thinking of quitting my minimum wage job and focus on becoming a real estate agent instead. Just scoring one $500K transaction would've had my whole year's salary taken care of.

Thanks
-Kim

Details on what it takes to become a real estate agent in Texas https://www.trec.state.tx.us/licenses/salesapp.asp

[Lowexpectations]

I'm not signing up a newly minted real estate agent for my 500k+ listing. I'm wanting some referrals or some other background first before I pay you 15k

[kimpurcel]

Yeah, I guess you're right. Initially I thought the high property taxes would keep prices steady in the $200K range. I saw my dream home in the Midtown area (close to where all the apartments are) but now it has doubled or tripled that so I'm kind of priced out of the market. single, f, 26. Anyone else has the same situation? It's frustrating... from $120s per square feet to $220 per square feet in 77006 in a few years.

I'm thinking in another 5 years it would double again to $440 per square feet. Maybe I should take a big loan now and buy it before then, seems like easy money to be made here. That or being a real estate agent.

[bu2]

Originally Posted by Texas Ag 93

I think in most major cities, the desirable, updated homes in urban neighborhoods are always among the most expensive. I certainly don't think this is unique to Houston. And some of the neighborhoods mentioned have always been the most expensive real estate in town (West U). Montrose was starting to turn before I moved away back in 2001, but I would probably agree Midtown is a relatively new phenomenon.

Actually in the 70s, West U was below average in price per square foot. It took off in the 80s, suffered a stagnant period from roughly 89 to 91 and then took off until the 2008 recession, at which time only River Oaks had a higher price/square foot. Its taking off again now.

[Texas Ag 93]

Originally Posted by bu2

Actually in the 70s, West U was below average in price per square foot. It took off in the 80s, suffered a stagnant period from roughly 89 to 91 and then took off until the 2008 recession, at which time only River Oaks had a higher price/square foot. Its taking off again now.

Good points. I moved to Houston in 1979, and always recall West U as being one of the best, if not the best, options for "nice neighborhoods" inside the Loop. It seems like only in the early 90s did Bellaire start the scrape and build trend in earnest, and Montrose and the Heights were always limited to small bungalow style homes. Memorial seemed to be the only option for people who wanted expensive, but outside the Loop (though near the city). I've always considered River Oaks to be its own category altogether, but maybe that's not the case on other people's minds.

Now, it seems like there is much more overlap of options in multiple areas inside the Loop.