Happy Thanksgiving all! We appreciate each and every one of you. As we enter the holidays we are wrapping up some of our projects we’ve been working on for the better part of a year. Our Rice Village property is near completion. You can see updates on our Facebook page soon.
Our Third Ward property is going to be more of a lipstick flip rather than a major rehab. We hope to have that one up and running in 2-3 months. We’ll continue to buy into this area as we see opportunities. The Third Ward is undergoing major changes.
We’re starting to expand into higher end residential contracting inside the loop. I’ve included a picture below. I really love the bath tub, rainfall shower, and farm style sink we did here. It came out beautifully and our client couldn’t have been happier. Check out more pictures pinned at the top of our Facebook page. We now have the staff to take on projects of this size and will be increasing our marketing footprint. More to come!
If we can help you with your property management or contracting needs don’t hesitate to email me at email@example.com.
MLS Monthly Article
In mid-November the MLS released their monthly report. Here is a look at the table for October of this year:
Last month I noted that Harvey activity skewed the data and we would need to wait until October to get a feel for the state of the market. This month Houston hit all time highs for volume, median price, and average sales price. Average rent is down just 1.1% from last year. Honestly I wasn’t expecting prices, volume, and inventory to all be up this month. The market is still hot in Houston.
Here is a breakdown by segment
- $1 – $99,999: decreased 9.0 percent
- $100,000 – $149,999: decreased 5.3 percent
- $150,000 – $249,999: increased 3.9 percent
,li>$250,000 – $499,999: increased 11.6 percent
- $500,000 – $749,999: increased 8.3 percent
- $750,000 and above: increased 12.0 percent
Activity among lease properties was mixed in October. Single-family home rentals rose 7.3 percent while leases of townhomes and condominiums fell 6.8 percent.
The average rent for single-family homes declined 1.1 percent to $1,754 while the average rent for townhomes and condominiums edged up 1.2 percent to $1,550.
I linked some important articles below. I read 20-30 articles and cherry pick the ones that I find most valuable. Here are a few articles worth reading:
Zillow Cash Home Offer Coming to Houston
Zillow is going to start offering cash on home in Houston. This is very interesting and worth watching. I’m curious how this will impact in particular the wholesaling market. If there is an internet offer coming within a matter of days sellers may start looking first to Zillow before marketing their property.
Another interesting fact is that Zillow is often materially off price in Houston. They’ve rated themselves in the past at 1 star for accuracy. If you’re an investor this is worth watching as a potential major market disruptor.
HP New Campus in Springwood Village
After multiple floods at the original HP location the company is moving to a new headquarters in Springwood Village. The previous campus has flooded the last two years. The new campus will be in a hot investor market for the last 5 years or so in Spring. I know several people with multiple rentals in this area. This will mean both Exxon and HP are part of the Spring community. Expect prices to increase in this area as more jobs move into the community.
Where Houston Apartments Rose and Fell the Most
I love these comparative articles of local submarkets. It’s a great way to see where folks are moving to and areas rising in popularity. There is a lot of activity around Spring, Woodlands, I-69 that is worth following. There is a lot of cheap property just east of I-45 toward I-69. We could see gentrification in these areas as more demand is created in and around IAH airport.
Houston submarkets with the biggest Q3 rent swings (year-over-year):
- I-69 North: 9.7 percent increase (from $0.89/square foot in Q3 2017 to $0.98/square foot in Q3 2018)
Woodlands-Conroe South: 7.6 percent increase (from $1.17/square foot in Q3 2017 to $1.26/sf in Q3 2018)
- Dickinson-Galveston: 6.2 percent increase ($1.03/sf in Q3 17; $1.09/sf in Q3 18)
- UH-I-45 South: 5.9 percent growth ($0.89/sf in Q3 17; $0.95/sf in Q3 18)
- Bear Creek-Copperfield-Fairfield: 5.2 percent growth ($1.12/sf in Q3 17; $1.18/sf Q3 18)
Rent drops or flat:
- Woodlake-Westheimer: 1.2 percent drop ($1.16/square foot in Q3 17; $1.15/sf in Q3 18)
- Alvin-Angleton-Lake Jackson: 0.5 percent drop ($1.08/sf in Q3 17; $1.07/sf in Q3 18)
- Baytown: 0.7 percent increase ($1.00/sf in Q3 17 to $1.01/sf in Q3 18)
- Galleria-Uptown: 0.7 percent increase ($.142/sf in Q3 17 to $1.43/sf in Q3 18)
- Katy-Cinco Ranch/ Waterside: 0.7 percent increase ($1.23/sf in Q3 17 to $1.24/sf in Q3 18)
Highest average rents per square foot in Houston Q3:
- Downtown: $2.10
- Montrose-Museum District-Midtown: $1.84
- Highland Village-Upper Kirby-West University: $1.78
- Heights-Washington Ave: $1.75
- Med Center-Braes Bayou: $1.48
- Galleria-Uptown: $1.43
- Sugar Land-Stafford-Sienna: $1.27
- Woodlands-Conroe South: $1.26
- Katy-Cinco Ranch-Waterside: $1.24
- Tomball-Spring: $1.23
Have A Deal?
WoodBaker creates win/win situations for the sellers of properties. We buy, rehab, and rent properties for investors all day every day. If you need advice, help, or an exit strategy we can help you. Feel free to email me with any deals at firstname.lastname@example.org.
Need a Deal?
WoodBaker is one of the premiere real estate buyers in the Houston area. We get 3-6 deals per month. If you would like to invest as a cash buyer or are looking for rent to own opportunities let us know. If you are on this list you’ll get the first opportunity to buy any deals we find. Email me at email@example.com.