Some really good responses on this thread...

Right now Houston RE is being driven by underlying fundamentals. As long as we keep hiring (in all sectors, not just OG) demand is going to keep rocking.

The other issues for anyone who says sell it and take profit.... Where are you going to live? Houses are an investment, but they are also a necessity for living and will always cost something. If you think ITL (or really all of westside) has gotten to hot, then you have to also make a significant lifestyle to move to the burbs. That's fine, but it's a trade-off. I've lived in the Heights since 2007 and I love my 10 min commute.

Have a friend that lived just north of 11th off of Micheaux (sp.). They bought a 2/1 house around 09-10 in the $300k range and just sold for over $500k.

They are in the process of moving to the burbs and going to live on the cheap. While they'll hate not living in town, they will be closer to her work and he works from home. They'll also have virtually no house payment due to the price disparity between suburban homes and Heights homes.

And I'm like some of you guys, I think the "bubble" will be bursting soon. I've grown up with the oil and gas business and know how cyclical it is. People always say that the good times will keep going, but there is always a crash. With that said, Houston has been way behind the curve of every other major city in terms of housing costs, so we are finally catching up. Maybe the prices will hold high, but it's really hard to imagine them continuing to grow like they have been.

On a side note, I was in Lowes last week and the person helping me had just moved here from NY. I later had a delivery to my house from a young guy that had just moved here with his family from AZ.

For people that cash out and move to the burbs on the cheap, aren't you hit with a big tax bill on that profit?

We've talked about moving to Benders Landing (to hang with ma boy Q) or a similar neighborhood but it would have to be after we need grandma in westchase for babysitting.

Up to 250k single and 500k married is tax free after 2 years. Best tax break out there.

RTT, I think we live on the same block. It should be easy for you to figure out which house is mine!

i bought in late 2012 (17th between lawerence and Nicholson) at the very start of the run up, based on comps and whats been selling Im up over 50% since then. 325k to 500k. Now it does help that i thought my property was undervalued by 30-35k when i bought it due to an oversized lot (7500 vs 6000sq ft.)

CRM

This is driven by gas moreso than oil isn't it?

Drumboy- I don't even know where Lot Y is besides that I'm parking there. I may tailgate there, but will probably stay by Reed.

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out of staters are paying stupid prices in the heights. they don't know any better.

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I am interested in this. Can you explain further? Are you saying that people moving from places with higher $/ft2 real estate are paying above market value for homes in the heights (I'm guessing they just assume homes everywhere cost the same as wherever they're moving from?)? And presumably they are all doing so without local realtors advising them as to the market prices and without doing any research themselves as to market value?

I've just heard this theory before and want to understand it better.

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Drumboy- I don't even know where Lot Y is besides that I'm parking there. I may tailgate there, but will probably stay by Reed.

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Took me a while to find it but its north of wehner. I'll be at reed too.

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Are you saying that people moving from places with higher $/ft2 real estate are paying above market value for homes in the heights (I'm guessing they just assume homes everywhere cost the same as wherever they're moving from?)? And presumably they are all doing so without local realtors advising them as to the market prices and without doing any research themselves as to market value?

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I know of two people near me (Shady Acres) that fit this perfectly. One family is from CA and the other Oregon or Washington (I cant remember which).

what gets me are the YOUNG people moving in. I'm in Woodland Heights. Couple across the street from me can't be 25 yrs old each and they just spent maybe $600K for house. Next door to them another couple clearly under 30yrs spent even more on their house. Both couples also drive nicer cars than I do!

they may have better jobs than you...or their parents are rich...

We are hoping rising property taxes eventually weed folks like you out.

My wife and I bought a 3 bedrm, 2.5 bathrm in the Heights in 2010 for $450K. Two weeks ago our neighbors just sold their house, which is exactly like ours, for $715K. We have a second kid on the way and really want a 4 bedroom house in the Heights within the Harvard Elementary zone, but we can't afford to drop > $1 million on a house. Rising prices are good until you want to upgrade.

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If you don't know what you're doing, do it quickly.

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the person helping me had just moved here from NY. I later had a delivery to my house from a young guy that had just moved here with his family from AZ.

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We're full, damnit. Go somewhere else.

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what gets me are the YOUNG people moving in. I'm in Woodland Heights. Couple across the street from me can't be 25 yrs old each and they just spent maybe $600K for house. Next door to them another couple clearly under 30yrs spent even more on their house. Both couples also drive nicer cars than I do!

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Not saying this is the case, but probably getting some help from their parents. Maybe co-signed or provided help with the down payment. Hell, I dated a chick whose parents bought her the home so that they could have a rental property.

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what gets me are the YOUNG people moving in. I'm in Woodland Heights. Couple across the street from me can't be 25 yrs old each and they just spent maybe $600K for house. Next door to them another couple clearly under 30yrs spent even more on their house. Both couples also drive nicer cars than I do!

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Was this on Omar St. by chance? After graduating bought a tear down in Sunset Heights in 2011 tear down for $200,000 5% down, sold January 2014 for $330,000. Used the profit to put 20% down on nice remodel.

oh, and HCAD value went up 45% with no cap. Protest didn't work out but at least it is still $100,000 below what I paid.

[This message has been edited by edmo (edited 8/15/2014 3:03p).]

not Omar - but I'm pretty darn sure Daddy is helping pay for one of those houses.

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We're full, damnit. Go somewhere else.

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This. I can't tell you how many times I've heard this over the past couple of years:

"I'm just here for work."

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not Omar - but I'm pretty darn sure Daddy is helping pay for one of those houses.

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Or they are just more successful than you are

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Or they are just more successful than you are

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Millennials

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We had a 1050 sqft in Woodland Heights that we bought in 2010 at $279k and just sold at $462k....Htown is hothothot

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$440/ft? What was lot size?

[This message has been edited by BMX Bandit (edited 8/15/2014 4:01p).]

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RTT, I think we live on the same block. It should be easy for you to figure out which house is mine!

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Gray & white house?

(don't judge my house too hard; It's an ongoing project)

Ours is more of a tan and white. With the large Ag flag, of course.

That's the one I meant.

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We had a 1050 sqft in Woodland Heights that we bought in 2010 at $279k and just sold at $462k....Htown is hothothot
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$440/ft? What was lot size?

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Regular sized 5000 sqft lot in Woodland Heights. Buyers had apparently been outbid on 5 other properties so they came in pretty aggressive on ours.

http://www.har.com/HomeValue/715-Ridge-Houston-77009-M36346651.htm

[This message has been edited by TheWoodsAg (edited 8/18/2014 5:35p).]

Late to this thread, but I sold in the Heights 2 months ago just because I don't think the bubble is sustainable. A lot of other life changes made it the right time, but I still can't believe what the market is down there.

The other side effect is it means I will probably end up having to spend $100K to build a garage apartment.

I don't think a lot if you understand the definition of a bubble.

the new construction on my block since we've lived here has been listing for 1MM+

it's nuts

http://blog.chron.com/primeproperty/2014/08/report-houston-among-the-worst-for-affordability-for-first-time-homebuyers/

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A national report shows Houston has the top real estate market in the country but ranks toward the bottom of the pack when it comes to affordability for first-time homebuyers.

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In Houston, the combination of low inventory and soaring home sales prices have recently put a dent in its reputation as a low-cost place to buy a home or rent. It ranked toward the bottom on this list for affordability.

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I don't think the bubble is sustainable

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Well, until prices stabilize and reach market value. People are shocked to see prices rise, but remember Houston is one of the last cities to gentrify.

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I don't think a lot if you understand the definition of a bubble.

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I keep wondering what to call it, but prices are getting to a bubble stage. Seeing 20% or more price hikes in some areas in just a year? Oil money, low interest rates, & a ton of people buying cash. I'm also curious which of those major three factors will drop first. The transplants overpaying have cash.

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Houston is one of the last cities to gentrify

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compared to where?

nyc and dallas are the first that come to mind.