Lake Houston - Humble - Kingwood Edition | July 2023

CONTINUED FROM 1

2023 HOME EDITION

RISING RESIDENTIAL

The Lake Houston area is home to roughly a dozen master-planned communities, with several still in development.

decide to stay home and make home improvements,” Rose Miller said. Sales for single-family homes in the Lake Houston area decreased about 17% in April compared to April 2021, according to the Texas Real Estate Research Center. Rose Miller said low inventory has resulted in a buyer’s market. “When [the market] was competitive and you’re in a bidding war, you’re going to take what you can get,” she said. “Buyers are not playing that game anymore.” Cost of living In response to the interest rate change, Rose Miller said many homebuyers are seeking new- construction homes in master- planned communities over resales. “The builders have interest rates that are lower than the going market, so it makes it very attractive for buyers,” she said. In the Lake Houston area, Balmoral homes range from $200,000- $500,000, while homes in The Groves and The Highlands run from $300,000-$700,000. In Saint Tropez, homes are expected to start at $350,000 and go to $700,000. However, Rose Miller said in master- planned communities—which tend to have more lavish amenities than a typical neighborhood—she believes it’s important for buyers to keep additional fees in mind. For example, annual homeowners association fees cost $1,164 in The Groves and $1,420 in The Highlands. “You need to do your homework so you don’t get surprised when those HOA fees hit you,” Rose Miller said. “It’s just a question of do they feel value for what they’re getting?” While HAR Chair Cathy Trevino said improving market conditions may be ahead, a variety of factors will play a role in the outcome. “Unfortunately, there still are looming inuences [on the housing market] out there that remain out of our control, including interest rates, a possible deepening of ination or a drift toward recession,” she said in the report. “Any one of those could slam the brakes on home sales.” Emily Lincke contributed to this report.

new housing units by 2031, according to a PASA report prepared for New Caney ISD in April 2022. While Saint Tropez is still in the early stages of development, Balmoral and The Groves—both located in Atascocita—are approaching build- out this year, developers said. The Groves began development in 2013 and opened with its ¦rst homes in 2015; work on Balmoral began shortly after in 2017. Upon completion, the communities will comprise 2,000 and 2,500 housing units, respectively. “We are selling the ¦nal lots to builders this year as well as the ¦nal commercial parcels designated for future development,” said Steve Yetts, president of The Groves developer Ashlar Development. Meanwhile in Porter, The Highlands began construction in 2020. Upon build-out, the 2,300-acre community will feature 4,000 homes. “The Highlands opened in fall 2021 and recently passed 450 home sales and 300 residents,” The Highlands Marketing Manager Becca Green said. Developers agreed choosing the location for their communities was paramount to their success as the Lake Houston area has close proximity to George Bush Intercontinental Airport and easy access to corridors such as Hwy. 59 and the Grand Parkway. Market outlook After two years of elevated home prices in Houston, prices began to decrease for the ¦rst time in February, according to a June 14 report from the Houston Association of Realtors. However, the median price for single- family homes—which ranged from $298,815-$379,500 as of April—in three market areas that make up the Lake Houston area remains roughly 20%-40% higher than the median price in April 2019, according to the Texas Real Estate Research Center. “[Home] prices have come down but not as much as people thought they would by now,” Rose Miller said. Local real estate agents said the increase in interest rates to above 6% for a 30-year mortgage—which occurred in September for the ¦rst time since 2008, according to Freddie Mac data—may have caused prospective homebuyers to hold o¢ on purchases. “Now, people look at the inter- est rate, and they see what they can buy for their money, and they just

Under construction

Built out

99 TOLL

1314

N O R T H PA R

COURTESY ASHLAR DEVELOPMENT

W. LAKE HOUSTON PKWY.

1960

WOODLAND HILLS DR.

LAKE HOUSTON

COURTESY CALDWELL COMMUNITIES

3 The Highlands Price range: $300,000s-$700,000s Developer: Caldwell Communities Size: 4,000 single-family homes Status: opened fall 2021; recently passed 450 home sales and 300 residents 4 Saint Tropez Price range: $350,000s-$700,000s Developer: Megatel Homes LLC Size: 4,500 single- and multifamily homes Status: broke ground in June 2022; began preselling in August; completed Phase 1 in rst quarter 2023

1 Balmoral Price range: $200,000s-$500,000s Developer: Starwood Land (formerly Land Tejas Development Co.) Size: 2,500 single- and multifamily homes Status: opened in 2017; in nal phase of development 2 The Groves Price range: $300,000s-$700,000s Developer: Ashlar Development Size: 2,000 single- and multifamily homes Status: opened in April 2015; in nal phase of development

8 Kingwood 9 Oakhurst 10 Park Lakes

11 Summerwood 12 Valley Ranch

5 Canyon Gate 6 Eagle Springs 7 Fall Creek

SOURCES: DEBORAH ROSE MILLER, ROSE REALTY; STARWOOD LAND; LAND TEJAS DEVELOPMENT CO.; ASHLAR DEVELOPMENT; CALDWELL COMMUNITIES; MEGATEL HOMES LLCCOMMUNITY IMPACT

Land Tejas was acquired by Star- wood Land in 2021. Deborah Rose Miller, a Realtor with Rose Realty, said the Lake Houston area is home to roughly a dozen master-planned communities. She added the recent rise in master- planned communities is being further highlighted by a second trend: homebuyers opting for new- construction homes over resells. “This is the year for new construction,” Rose Miller said. “I’ve [sold] more new-construction homes

this year than ever before.” As new homes y on and o¢ the market, real estate experts said the future of a¢ordable housing in the Lake Houston area remains unclear. Creating communities According to a Population and Survey Analysts report prepared for Humble ISD in March 2020, Balmoral and The Groves were expected to add 2,060 and 1,196 new housing units, respectively, by 2029. Similarly, The Highlands was expected to add 2,902

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LAKE HOUSTON HUMBLE KINGWOOD EDITION • JULY 2023