If you receive our twice-a-year River Oaks Market Report – the 2020 Outlook edition is set to drop this week – you can skip the next two paragraphs of explanation and get right to the meat of this blog. Otherwise, allow us to explain how we track and categorize real estate sales in River Oaks.
We organize sales into four categories:
- Sales of $2 million or less – the entry-level category, if you will, for River Oaks houses
- Sales of $2 million to $4 million – the mid-price range of houses
- Sales of $4 million or more – the high-price range of houses
- Land & New Construction – “land” can refer to older houses that are purchased and demolished as well as land that is sold already scraped, while “new construction” refers to both custom and spec houses
In the ROMR, we always list every MLS sale (as well as non-MLS private sales if we can confirm details), noting street, house size and lot size. We graph the sales and track the price-per-square-foot trends. If you’re a numbers geek like Cameron, you will love this stuff!
One thing we don’t have room for in our printed ROMR are our graphs showing inventory in each of the three house-price categories above. And that’s what we present here today: graphs of 2019 inventory. Think of it as background info to give more context to the sales information.
Shown below are the three inventory graphs in the same order as sales categories above.* The final and fourth graph consolidates all of the house-sales information into a single display.
So how is inventory shaping up in the first six weeks of 2020?
- Sales of $2 million or less inventory steadily dropped in the final months of 2019. As of mid-February, the inventory has only barely started to climb again. We expect there will be around 12 properties in this price range by April.
- Although inventory averaged around 36 properties in the $2 million to $4 million range, you can see on the chart above that the available properties steadily dropped through the last months of the year. Some of this was due to sales, but in some cases, sellers took their houses off the market in order to have a quiet holiday. Since January 1, inventory in this range has been a little slow to start up again. As of this week, there are just 28 properties on the market.
- The slacking-off trend at the end of the year is also true for the properties priced at $4 million or more. Right now, it continues to hover around 36. However, there are several big custom projects in the pipeline set for completion this year, and we anticipate inventory in this price category will see significant growth. In fact, we expect to see the biggest inventory in this price range in the history of River Oaks.
*Land & New Construction does not have an inventory graph, as these homes are not typically marketed as lots, but as houses. They don’t become lots and make their way into our Land & New Construction classification unless or until the house is torn down. Call us at 713-240-2611 if you wish to discuss in more detail.