HOUSINGNEWS REPORT
A RISING TIDE IN HOUSTON
According to Metrostudy, homebuilders are on track to build 28,000 new homes in 2018, a slight increase over 2017 and a 10 percent increase from the most recent bottom in 2016, keeping the Houston metro area with the second highest number of new home starts in the country, “It’s generally positive. Not gangbusters positive but not negative,” said Lawrence Dean, Metrostudy’s Regional Director in a Houston Chronicle article from February 2018. “We want it to be 32,000 a year.” Still, builder confidence in the area remains high, according to Mike Dishberger, CEO and co-owner of Sandcastle Homes. “We’re still very optimistic for the year. The oil jobs are coming back. The traffic’s been good. There’s some pent-up demand,” said Dishberger. “Harvey hit and for two to three months sales weren’t there. People are now deciding not to rebuild and selling for land value only to someone who will build up.” Metrostudy reported in November 2017 that Harvey was basically a resale market phenomenon due to the locations of most of the flooding. Overall, construction activity in the Houston metro is expected to be lower than in 2017, according to the Greater Houston Partnership’s report titled “Economy At A Glance.” All told, even with moderate growth in industrial and new home
Inner Loop neighborhood since 1995. As he explained it, the company tears down existing warehouses and homes, subdivides the lots and builds condominiums and townhomes in their place. While buyers can still get a home in the $200,000 price range in Houston, Sandcastle sells its homes in the $450,000 price range — a move-up type of home with 2,500 to 3,000 square feet, three bedrooms, two baths and a two-car garage.
construction this year, it is not expected to totally offset the slowdown in office and multi-family construction. “Houston does not have zoning. That’s why it’s building real fast. When it comes to permits the city of Houston has a viable program. Unlike California in Houston there’s only one permit per driveway. It’s the wild west compared to California.”
An in-fill builder, Dishberger’s company has been building inside the city’s
“Harvey hit and for two to three months sales weren’t there. People are now deciding not to rebuild and selling for land value only to someone who will build up.”
MIKE DISHBERGER CEO SANDCASTLE HOMES HOUSTON, TEXAS
HOUSTON 2018 HOUSING FORECAST Provided by Ted C. Jones, Chief Economist, Stewart Title Guaranty Company
Existing home sales
Up 2%
Existing home prices
Up 3.6%
New home sales
Up 9.2%
New home prices
Up 4.1%
30-year mortgage rates
Up to 4.7% to 5.3%
Refinance share of loan volume
Down to 25% from 35%
Commercial sales
Down 15%
20
MARCH 2018 | ATTOM DATA SOLUTIONS
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