Katy, TX – Cinco Ranch Does it Again! in Katy, TX – # 1 in sales in US

March 24, 2010

by christi borden

 According to a report by the PR Newswire – March 23, 2010 –  Newland Communities’ Cinco Ranch in Katy (sprawling suburb 20+ miles west of downtown Houston) was the nation’s top-selling master-planned community for new-home sales in 2009, according to a survey by RCLCO, an independent real estate advisory firm.

“With 887 net new-home sales in 2009, Cinco Ranch topped the RCLCO study, moving up from second place in 2008. Sales in the 7,600-acre community were up 14%, making it one of only four communities on the top 10 list to report a positive new-home sales gain from 2008 to 2009. Telfair, another Houston community by Newland Communities, was ranked fourth, up from sixth the year prior, with 450 new-home sales, a 9% sales increase over 2008 levels.”

 Interestingly, Newland held 5 spots in the top-selling 15 for last year: Cinco Ranch, Telfair, Eagle SpringsTeravista and FishHawk Ranch, No other developer has held such a record and continues to be the leader in not only sales but resident satisfaction.

The Cinco marketing folks have recently changed their campaign to, “Cinco Ranch, Your Comfort Zone”. At a time when the economy across the nation has people skittish about real estate, this is a brilliant approach. Buyers need to feel comfortable or safe when making a home purchase. This has never been truer than for the relocation buyer – who may only be here for a year or two before moving again and needs to place his/her family in the safest area in terms of resale value. Although there are many choices out there, one must really look to the strength of the community and the developer along with the actual builder when considering a purchase. Buyers understand this as do the Realtors that serve them. No amount of incentives or give-aways can change the fact that community is so very important in our area – not just in terms of resale values but also quality of life. If you research the sales data for area builders, you will note that many of them are being kept afloat because of the strength of the very communities in which they build.

 “Newland’s sales success at Cinco Ranch can be attributed to the product diversity our homebuilders offer, the proven established track records of these communities, and a highly focused marketing approach that speaks to our customer needs,” McLeod continued.
Houston’s strong showing in the RCLCO study underscores the fact that the city is a bright spot in the national economy.

 RCLCO has been releasing its top-selling MPC rankings since 1994.

About Newland Communities
Newland Communities is the largest private developer of planned communities in the United States. With a legacy that began in 1968, Newland specializes in comprehensive residential and urban mixed-use master planning with expertise in leading large-scale single and multifamily new-home communities. Headquartered in San Diego, Calif., Newland and its affiliated companies are currently developing and managing nearly 40 projects in 14 states. www.newlandcommunities.com

 About RCLCO

RCLCO is an independent real estate advisory firm, providing market and financial analysis and strategic planning services to a broad spectrum of clients including developers, corporations, financial institutions, institutional and private investors, public agencies, and nonprofit organizations around the globe.

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Houston Real Estate Market – Single-Family – January 2009

February 11, 2009

Houston residential real estate now has the lowest inventory of single-family homes on the market since January 2004. In comparison to January 2008, Houston has seen a 20% drop in overall number of homes on the market and a 26% drop in new listings taken. New listings taken in January were the lowest ever taken since January 2002. This is good news amid a nationwide overabundance of homes on the market and an economic stimulus plan targeted at mitigating the rising tide of inventory. Houston never experienced a bubble and its’ economy is one of the strongest in the nation;

You couldn’t be in a better City for selling real estate than Houston Texas. TX A&M Research Center Data 1/12/09
More than 2 million jobs were lost between Nov 2007 – Nov 2008 in the Nation; representing 1.2 % of its labor force. The Texas economy gained 222,900 jobs during the same time period; an increase in labor force of 2.1%. Real Estate Center RECON 1/13/09
Houston has the strongest job market in the US. Metrostudy, Jan. 12, 2009
Texas has the strongest job market by State in the US exceeding the nearest competition by 1000%. MetroStudy, Jan. 2009.
Houston’s inventory of homes is 5-6 months on average. This is the lowest average days on market in the US. TX A&M Research Center Data 1/13/09
“We are half way through our recession in Texas. It started out last Jan. 2008.” Dr. Dotzour, TX A&M Research Center 1/13/2009
Houston has the most affordable median home price of any MSA.
TX A&M Research Center Data 1/12/09

Despite the good news amidst the bleak national economic scene, Houston got off to a slow start in January.

There were 2,827 single-family home sales, a figure 23% below January 2008.
Dollar volume for the month was $466,234,494, a 33% decline over last year.
Contracts initiated during January 2009 experienced 2,774 units or a 23% decline over last year.
The median sales price of sold homes in January 2008 was $127,850, representing an 8% decline over January 2008.
The average sales price was $164,922, or 13% lower than found in January 2008.
Home prices in Houston are not depreciating, there is simply a different demand in home prices classes.

Last year, million dollar home sales in January were up by 58% over the previous year and anything over $600,000 experienced double-digit increases. This year, those same home price classes have experienced double-digit declines as high as 61% for $600,000-$699,999 and homes over $1 million experienced a 57% decline over January 2008. This change in price class demand directly affects the average sales price overall. This year price classes under $60,000 are in positive territory whereas all others experienced a decline over January 2008.

What home price classes experienced the highest demand by number of sales in January 2008?

RANK
PRICE CLASS
# OF SALES 01/09
1$200,000-$249,999/220
2 $120,000-$129,999/182
3 $100,000-$109,999/163
4 $250,000-$299,999/156
5 $90,000-$99,999/153
6 $80,000-$89,999/148
7 $70,000-$79,999/145
8 $300,000-$399,999/143
9 $130,000-$139,999/134
10 $60,000-$69,999/128
11 $140,000-$149,999/124

It is interesting to note all price classes in the table above that are over $80,000 were in double digit decline last year. In short, Houston has experienced an aberration in sales by price class over the last few years. We see buyer demand returning to atypical price classes seen during normal Houston markets.
While normal is not as much fun as exuberance, any Houstonian gladly accepts our market as it is because it is currently the best that it gets.

Opportunities are ripe for Houston real estate. Houston does not need an economic stimulus package to stop home price depreciation or to absorb excess inventory, but Houston will benefit from national stimulus programs designed to do so. The biggest boost residential real estate could receive would be a boost in confidence and certainty about the future economy