Houston’s Montrose District – 2018 Market Analysis
Houston’s Montrose neighborhood is an urban area of approximately 4 square miles. It is located adjacent to the affluent River Oaks Area and near the Houston Central Business District. If you’re looking for a neighborhood with diverse architecture, Montrose includes a healthy mix of bungalow style homes which date back from the early 1900’s to new construction modern homes.
Within the previous 12 months, from August 2017 to 2018, there have been approximately 202 closed sales. Of these 87 were built after 2010, and 80 were built prior to 1970. The neighborhood is in transition. Older homes are being razed for custom and speculative new construction.
Market studies indicate Montrose is a reasonably stable market with consistent demand.
Year to date from January to August of 2018 there have been 142 closed sales with a median sales price of $622,000. Prior years from 2012 to 2015 have shown consistent growth. A 19-percent increase in value year over year from 2012 to 2014. However, the past three years from 2015 to 2017 indicate a softening.
Prices appear to be stabilizing compared to the increasing values over the previous years. Volume appears reasonably stable. Market sentiment is moving from a seller’s market to a buyers’ market. Homes priced properly in this market typically sell within 35 days.
While there is a significant amount of new construction in Montrose, the neighborhood is mostly built out. Older homes are being sold for their lot value. New construction with significantly higher prices are replacing the cozy older homes. Properties that are sold at lot value range from $60 to $106 per lot sq.ft. with a median price of $95 and an average price of $82 per lot sq.ft. The typical lot size in Montrose is approximately 5,000 sq.ft.
The lack of zoning, wide variety of styles, and urban location where a significant percentage of land use is allocated to multi-family and commercial properties, makes the neighborhood rather uneven. This can be tricky in a value analysis where careful consideration needs to be given to external factors, such as a subject’s proximity to commercial properties, noise from nearby restaurants, street parking, historic districts, deed restrictions and more.
Certified Residential Appraiser, Gynell has a diverse appraisal background covering Commercial, Residential, Rural, Complex and Luxury Properties as well as National Appraisal Review work in the secondary Market. She began her Appraisal training in Oklahoma in 2001 covering Rural and Commercial Properties. With several years as a National Review Appraiser at Fannie Mae and other big banks, Gynell has keen insight into the secondary market guidelines and requirements.