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Houston new station

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farmguy

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Houston housing booms as
country falters

[SIZE=-1]10:56 AM CST on Wednesday, January 9, 2008[/SIZE]


[SIZE=-1]By Jason Whitely / 11 News[/SIZE]

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The housing market in Houston is bucking the national trend

You don’t have to drive far around town to see new homes under construction: Houston is in the middle of a housing boom.
Though thousands of new homes are being built right now, but one type is selling better than others.
Builders have never been so busy.
Houston set a record in 2006, building more new houses than any city in the country — more than 71,000.
And it’s forecast to keep those bragging rights this year.
“We’re not South Beach Florida; we’re not places in California,” Greater Houston Builders Association spokesman Brian Binash said. “We’re not Phoenix. We’re not Denver. We have a very dynamic market going on here. It’s still a very good buy. We still have homes that are appreciating in value. It’s not depreciating like you’re hearing about in other parts of the country.”
True. Home values aren’t falling in Houston, but some sales are sliding — at least middle class houses.
Sales of those priced between $80,000 and $150,000 are down 16 percent in the last year.
Ones from $150,000 to a quarter million are down 12 percent.
Experts figure the subprime mortgage mess and abundance of apartments have contributed to that slow down, but there is a surge in some home sales: luxurious ones. Houston’s healthy economy is creating thousands of new jobs, attracting people from the East and West Coasts.
“You’d be surprised how many homes are paid with cash,” Shad Bogany with ERA Bognay Properties said. “Because they made a killing on the east or west coast and they come to Houston and they’re able to buy two or three times more house for less money than what they had back home.”
Homes selling from $900,000 to $999,000 are up 15 percent, and sales of homes priced at a million or more increased 25 percent.
It’s the best million dollar market Houston has ever seen.
“The builder designed this room to be all theater,” Bogany said “It does have a full bath. The screen goes there.”
Realtor Shad Bogany is listing this 20,000 square foot home off Briar Forest near the Beltway.
“The Guest House is 3,000 square feet,” he said.
Though still under construction, it features a two-story mahogany library, secret doors in book shelves and 11 air conditioners. The price tag is $4.7 million
“But it’s three stories; elevator in it,” Bogany said. “Home theater is on the top floor. It’s got two masters.”
Once finished, Bogany believes it will sell.
It’s affordable for someone in a growing city that now leads the country in new home construction.
Texas has three other cities in the top 20: Dallas ranks fourth, and Austin and San Antonio fall farther down the list.
 
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George Hatch

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All real estate is local. Different markets run on different clocks. Houston was late to the party, that doesn't necessarily mean its immune from the hangover. That sales volume isn't slowing down for no reason.

Just remember that trees don't grow to the sky and if that market has a lot of investor activity rather than owner-users it could turn out to be just as vulnerable to their departure as the areas going through decline right now. Or not.
 

Workbox

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The minute the barrel of oil falls, you will see a hit, and yes many parts are in their own market themselves, and what I am seeing is investors preying on investors. Many of these east/west coasters, other parts of the country/countries investors, that either used their name for new construction or foreclosure flips are beginning to panic, because the subprimers that were speculated to purchase these homes are now gone, and many are starting to softening on their prices or trying to rent them out, which I think is also causing another symptom, "rent foreclosures" in which the rent won't pay for the note every other investor is competing for the same renter.

There are many "HOME" buyers just waiting, but waiting for the right price or rent price, but many of these investors and Realtors are holding on as long as they can.

Other market areas as mine are doing quite well, but I do hear a little panic from Realtors. But what keeps Houston in good shape is that we have land, which does help. But I am noticing many developments that have completely stopped or the building veracity is no longer their. But have seen many supersize homes.
 
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Restrain

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Dallas real estate agents were trumpeting the same mantra...weren't being affected. This week, they admitted that sales were off 25% from last year. Further, while homes in the 1M range are not as affected, it's the homes up to $400,000 that are the bulk of the market, and they're dying big-time.
 

murray stroupe

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Re; Wonder what the real story is in Houston

Thanks,Houston articlle.

That builder is pretty good with public relations/headlines;
if median? is down 16% ,& those through $250,000 down 12%,
as implied in middle article, typical media mistake/misrep.

Unless $ 4 million homes are most of market ,sure.
 
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Greg Bell

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2008 will be Houston's turn in the barrel....
 

Workbox

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So much for luxury homes, just came back from a northern part of the Houston market, where in the "Estate" Section is stating to take a hit. I saw a hand full of framed up homes and getting moldy. Talk to a resident and gave me the scoop. Foreclosures, and these are $500k and up homes. Many builders were enticed to build in this neighborhood section, just because they had slapped on "Estate". Some builders did not sell and still can not sell their model homes.............Because I know what the Appraisers DID! ......They used sales from a competing market (The Woodlands/Across highway) to use for comparables not what they are really worth when you make the proper adjustments. I knew, I knew it, I knew it.............

When I was doing appraisal there for a bank, they told the bank that they will not use them if they kept sending me in to kill the deals, because I was not playing ball, they were trying to establish a market. The resident told me that they are having a big meeting, because they can't sell the homes.......well, like the resident said, "it aint the Woodlands."

By the way, the resident that I talked too, bought the house at a discount from the builder.
 

Terrel L. Shields

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Houston is in the middle of a housing boom.
Duh....Tulsa, OK calls itself the oil capital. Truth is Houston is much much bigger and oil is King now. Houston will weather this storm far better than either coast or the Midwest. That applies to most markets where oil is booming. Even Denver will see improved conditions as the oil men return to the Rockies.
 
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