Crazy Home Prices in Midtown / Montrose / West U (Houston, Kirby: apartment, rent)

[Altuve]

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.

Midtown not too new of a phenomenon, started to turn in early 2000s as well. Areas that people looking to make a buck are investing in now seems to be the East End.

[gwarnecke]

I agree that prices in higher-end areas are out of step with what's going on in the oil industry. Nationally, the housing market has had a very strong couple of years. It might take a full-blown US recession (which would hurt our already-battered oil industry) to cause a correction. Even then, close-in single family neighborhoods with good schools (West U and the villages) will always hold up well relative to the far suburbs and transitioning areas.

[HookTheBrotherUp]

Not even five years ago, the changes were evident even just a little over two years ago. We purchased a place in Montrose that has almost doubled in price in just 2.5 years. And its the dirt value that went up, not the dwelling. But as I recall, the prices inside the loop, especially areas like Montrose, West U, South Hampton, etc., the prices never really took a hit like other areas when the market was down a few years ago, the homes tend to hold their value because of the location.

Granted the house we brought was a "fixer-upper", but it is a free standing house, two stories, so the backyard is large (for city standards), but is in a sea of 3-4 story monster homes packed two, or three to a lot (3 if on corner). We have a real estate friend who can sell our house tomorrow, pay off what's left on the mortgage, and still have almost double of our initial investment. Can't beat that, this is why the homes keep their values in the areas you mentioned.

Good luck.

[TonyHTX]

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

Wow I wish I lived here already 7-8 years ago so I could buy a house in WestU for 200K 5 years ago. Houston is becoming new LA right now.

[HookTheBrotherUp]

Originally Posted by TonyHTX

Wow I wish I lived here already 7-8 years ago so I could buy a house in WestU for 200K 5 years ago. Houston is becoming new LA right now.

Flipping houses is what makes them more expensive, in my opinion. Whatever a person purchased it for, after some improvement, the price will go up higher, sometimes ridiculously. This is what happened in LA, you have many people just buying up homes, never intending to live in them, but as investments. Urban Living and other investment groups like it also contribute to the high cost. Their new homes usually start $750K and up. Also, the land becomes more expensive once all the old homes are gobbled up and new ones put in their place. In the two years since I've lived in Montrose, I've seen enormous change at the hands of Urban Living, and the like.

[KatieKennedy]

The old adage location, location, location applies here. The land close to town will only become more valuable as the population of Houston increases and traffic gets worse. Hence the scrape and rebuild activity that started in West U and has spread to other inner loop areas like the Heights. People are willing to pay whatever the market will bear in the inner loop's desirable areas like Montrose and West U based on these areas' proximity to downtown, the medical center, and the cultural center. People with this sort of income like doctors and lawyers will pay the price not to have to sit in traffic for long periods of time. Their occupations are not particularly affected by the downturn in the oil industry. In the far flung suburbs the land is not as valuable. The values do not go up a lot as new subdivisions and developments come on the market.

[sonic0boom]

Originally Posted by TonyHTX

Wow I wish I lived here already 7-8 years ago so I could buy a house in WestU for 200K 5 years ago. Houston is becoming new LA right now.

You won't have found any West U homes for 200K 5 years ago. I purchased a home in the Heights in '09 but also looked at West U. Anything in the 300K range was an old, not-so-updated townhouse. And for that, there was maybe 1 or 2 listings. I'm talking the proper West U area zoned to the desirable schools.

[Augiec]

I hate to burst the OP's bubble, but the idea of an owner giving away 3% for putting a house that will sell itself on HAR (like KatieKennedy said) is a thing of the past. I almost made that mistake, but the broker I had was so zealous at selling to any decent offer versus waiting for a good one that I didn't feel comfortable selling then. I'm glad I held on to my house because it's worth a bit more now than it was then. Next time I'm just paying a flat fee and I'll let the old adage take over. Most of the homes in the area listed in the OP will sell themselves

[HookTheBrotherUp]

Originally Posted by sonic0boom

You won't have found any West U homes for 200K 5 years ago. I purchased a home in the Heights in '09 but also looked at West U. Anything in the 300K range was an old, not-so-updated townhouse. And for that, there was maybe 1 or 2 listings. I'm talking the proper West U area zoned to the desirable schools.

I work in the area, near Buffalo Speedway, and for about three years, my buddy and I would go to lunch in the area, and before returning to the office, we'd cruise up and down the streets, depending on where we had lunch, Afton Oaks, Montrose, Upper Kirby, West U, South Hampton, Museum District, etc.

We always pulled the flyers out of the canisters if they were available, and I do remember many of the West U houses being in the 300-400, range, maybe 450 if very nice and updated. It was during one of these lunch trips to Lankford's Grocery & Market (only sells food these days), that I found my current home in Montrose, and I've been here a couple, so five years sounds about right. I was not in any hurry, it was mainly just curiosity to be honest, but all those trips ended up being beneficial to me.

[gwarnecke]

Up until a few years back, you could find cottages in West U for under 300 on Community Drive, backing up to railroad tracks. I remember one was actually advertised on HAR as "perfect for the train enthusiast". Niche marketing much?

Around 2010-2011 I was renting in West U, and remember a couple of nice older homes in desirable parts of the city (a few blocks west of Kirby Dr) in the 300-400 range. Really really wish I had jumped on one...probably worth nearly twice as much now.