Houston’s luxury real estate market hit new highs last year, but is the landscape the same for buyers in 2022? Will the market’s record-breaking upward momentum continue and will there be inventory to support it? What are the new must-know developments in Houston’s hottest neighborhoods?
For a closer look at the housing market, I reached out to Demetrice Ballenger, a real estate specialist at Houston-based luxury brokerage firm Baker & Co. It tracks what’s happening to local developers, “from buying land to selling and marketing new communities.” “There are currently 340 homes in the pipeline with an average selling price of $350,000. Timing takes the next 24 to 36 months to complete,” he says.
Buyers are already lining up to get a piece of the new development. “I have seven contracts starting at $344,000 on a site of 24 homes. [Houston’s] inner city, where most of the first projects were built. “Right now we’re just pitching and they’re selling very fast,” said Ballenger, who started her Houston real estate career more than six years ago.
Jaime Baker, the broker/owner of Baker & Co., hired Ballenger and saw Houston’s market dynamics change over the decades. Baker’s routes to Houston date back to the 1800s. Four generations of his family were involved in the housing market, which began in 1840 when Bakers set up a successful general contracting business.
Baker’s great-grandmother, Lucille Beckner, was instrumental in developing a local multiple listing service that has its roots in today’s MLS, which is used by all real estate agencies in the area. A few generations later, Jaime Baker is now considered an industry innovator who has embraced technology and uses social media for effective customer outreach.
According to Ballenger, the first-time buyout market is largely made up of “people who wear gowns when we meet,” referring to Houston’s large and rapidly expanding medical community, adding, “We can’t keep inventory in stock.”
These communities feature open concept living, large master suites, quartz kitchen islands, wine centers, and large freestanding tubs. Buyers know the value these new homes offer.
Looking at the overall dynamics of Houston’s luxury market, Baker describes a changing high-end product: “For the first time, the luxury market in Houston has been and is in demand as it is now.”
He adds that the new residents who moved to Houston from California “couldn’t believe what they could buy here.” Five bedroom and 4.5 bathroom lighted luxury in a newly built 4,017-square-foot home in Bellaire, within the Houston metro area. Asking price: $1,375 million.
As more people move to Houston, look to developers and builders to be ready for housing for both first-time buyers and the luxury market.
He is a dedicated member of Baker & Co. Forbes Global Featuresa consumer marketplace and a membership network of elite brokerages that sell the world’s most luxurious homes.