SE Texas Real Estate Talk

New Construction Inventory Homes In Southeast Texas, No Excess Here!

With a little less than 5% of the homes for sale in Southeast Texas being new complete construction, you can applaud the home builders for not over-building in a slow housing market.

In fact, there are just 73 single family homes listed in the Beaumont MLS as new complete construction.  There is a category called new incomplete construction.  Those are homes started by builders but not yet finished.  I'm not talking about those homes here.  Today's focus is on the new residential construction that is complete and waiting for a buyer. 

Here's three things to think about:

1. The area with the most complete new homes is Port Arthur with about 20% of the total number.
2. The average number of days these homes have been on the market is 264 with a high of 586 in Nederland and a low of 25 in Beaumont's W6 area.
3. The average price of a new complete construction home in Southeast Texas is $217,417.

Take a look!

 

If you want to know more about new construction in Southeast Texas, contact me.  There's so much more information I provide my clients to help them make the best purchase.  I can help you too. 

Home Builders In Southeast Texas Don't Negotiate

 
This smart chart shows the number of homes currently listed as new construction in the Beaumont multiple listing service (MLS), the median price and the average number of days those homes have been on the market.  It also shows the total number of homes listed as complete new construction that sold in 2010. 

But back to the headline, in Southeast Texas home builders don't negotiate.  At least not much it seems.  In 2010, there were 154 homes listed as new construction in the Beaumont multiple listing service (MLS) that closed.   Here's how much the home builders negotiated off the asking price in specific ares on average:

1. Groves                      7%
2. Lumberton              1%
3. Orange County      1%
4. Orangefield             4%
5. Port Arthur             5%
6. Port Neches            2%
7. Beaumont W4        1%
8. Beaumont N6         2%
9. Nederland                1%

That's not a lot of negotiating.  Consider it was a slower than normal year for home sales and one has to be impressed that the home builders were able to stick to their asking prices the way they did.  There's something to be said for not over building a residential housing market with too much inventory.  (Just ask a lot of people in South Florida about that.) 

But don't be fooled, there are ways to negotiate with a home builder.  You can get a good deal on a new home in this real estate market.  Want to know more?  Just contact me.  I'll help you find the best deal out there. 

 

 

 

New Construction in Southeast Texas: What can you buy for less than $200k

You don't have to have a mega budget to buy a brand new home in Southeast Texas.  Here's a quick list of communities where you can find a brand new home for under $200,000.

• Dominion Court  See Map of Location  Here you will find a selection of homes already complete in sizes from 1700-1900 square feet of living space.
• Westwood Heights in Lumberton is too new for google maps.  On Marble Falls Drive you will find a new 4 bedroom, 2 bath with 1877 square feet of living space for $176,900.
• In Bridge City you can find new homes on Cypresswood.  Prices starting at $179,900.
• In Vidor, Corbett Homes is building an 1800 square foot 3 bedroom, 2 bath home for the 180's
• In Beaumont, Springwood see google map  and Windemere click here for google map  are the neighborhoods to go to.  You'll find a high quality home about 1700 square feet with a lot of bells and whistles that you find in the much more expensive custom homes priced under $200,000.

If you are looking for more information on new construction in Southeast Texas just contact me I'll be glad to help.

Slow Construction Zone in Beaumont, Texas

Its hard to be a home builder in Southeast Texas these days.  Since May 1, 2010 a grand total of eleven brand new, builder owned homes have closed in Beaumont, Texas.  Data comes from the Beaumont MLS. 

Those that did close averaged 183 days on the market.  That's six months for the mathematically challenged.  What to know how many brand new homes are available and waiting for a home buyer to come along?  Right now there are fifty one listed in Beaumont alone. 

You might be thinking the builders must be wheelin' and dealin' with home buyers about now.  That's where you'd be wrong.  Of the eleven sales that have occurred since May 1st all have been full price except for four. 

The average asking price of the homes that sold is $256,009.

The average sold price is $252,490.

Southeast Texas home builders seem content to hold on to their inventory rather than sell it at reduced prices in a difficult real estate market.  That's a good thing for other home sellers.  When the builders starting cutting prices, resale values also fall.  Buyers will buy new over resale when the prices are equal as a general rule of thumb. 

What are you going to pay for new construction in Beaumont, Texas?

In the Westend neighborhoods of Barrington Heights, Cottage Grove, The Meadows and Fairfield expect to pay from $110-130 per square foot of interior living space.  Out in Windemere you'll find a better price.  Just Construction is building a new home with granite, crown molding, and a lot of bells and whistles for about $105 per square foot. 

Now don't get me wrong there are good deals to be found but if you have your heart set on a brand new home be prepared to pay close to the builders price.  Even though its a slow time for residential construction - at least in Beaumont, Texas- the home builders seem prepared to wait on the right price instead of the fast sale.

Guess the Southeast Texas Neighborhoods with the Most New Construction Sales in 2010

We are just shy of half way through 2010.  Home sales were at record lows in the first quarter.  Fortunately, April's spring weather and the tax credit expiration gave the housing market a needed boost. 

You can add the home sales from January, February and March and you'll get pretty close to the number of homes that sold in April but I digress.

Today, for your reading pleasure I thought I'd look at which neighborhoods have had the highest number of new construction sales so far this year.  There are the familiar neighborhoods - if you live here you know the ones I'm talking about- and there are a few new-comers.  Without further suspense, here's the six top selling neighborhoods for the first five and a half months of the year with the number of sales, average price per square foot of living space, and the highest sales price. 

Keep in mind these are the new construction sales only.  There have been resales in these neighborhoods too.  Data is from the Beaumont MLS. 

Another interesting stat is the days on the market.  These new construction homes averaged 146 days on the market.  Builders have been negotiating off their asking price in some cases but not much.  Most of these sellers/builders averaged close to 97% of their asking price. 

Want to know more?  Subscribe to SETexasRealEstateTalk.com for weekly residential housing market updates.  Its easy just click the subscribe icon in the upper right column or contact me and let me know what you are looking for.

New Residential Construction Costs In Beaumont, Texas

Thinking about buying a new home in 2010?  There's something so appealing about buying brand new construction.  Fresh carpet that has never been walked on.  Bathtubs that have never had a ring of soap scum. Appliances that still have a warranty.  Oh yes, there is something wonderful about buying directly from a builder. 

Home buyers are willing to pay a premium for "brand new".

Just how much are Southeast Texas home buyers willing to pay for the luxury of a home that has never been lived in home.  Take a look.

This graph shows the asking price on a cost per square foot basis that home builders in Beaumont, Texas are listing homes for and the price on a cost per square foot basis that home buyers have been willing to pay.  The data is from the Beaumont MLS.  Sales are from the past six months. 

Break it down another way:

• Most new construction is on the market in a range from $115 - $130 per square foot.
• Most sales have occurred in a range from $105 - $120 per square foot.
• The highest sale went for $151.89 per square foot.  Any guesses where it was?  Barrington Heights.
• The lowest sale went for $92.64 per square foot.  It was on Brooks Road.

Other tidbits about new construction in Beaumont:

• Builders are still averaging over 95% of their asking price on most sales.
• On average number of days on the market for new construction homes is about 130.
• Right now there are 47 active listings classified as new construction in Beaumont, in the Beaumont MLS
• In the past six months there have been 24 sales classified as new construction in Beaumont, in the Beaumont MLS. 
• 47 actives vs 24 sales in a six month time frame would mean we have a 12 month supply of new construction in Beaumont. 
• According to the Real Estate Center at Texas A&M a six-eight month supply of inventory represents a balanced market.  We've got a slight buyers market at the present time. 

Want to know more?  Its easy.  Just contact me with any Southeast Texas residential real estate, home buying or selling question you have.  If I don't know the answer, I will find it for you.

New Construction Costs In Southeast Residential Market

Part two:  What's it cost to build a new home in Southeast Texas.

Looking at the sales data there is a clear pattern that develops when analyzing the new construction costs in Southeast Texas.  Here's a graph showing sales price by area.  These are homes that have sold.  This shows the price the builder was willing to sell for. In most cases we will assume they sold for a profit. 

 

The range is fairly narrow.  On the low side there are a few sales under the $100 per square foot mark.  On the high side there have been a few sales that approach $140 per square foot.  The neighborhoods where new construction has sold above $120 per square foot are:  Dominion Ranch in Port Arthur, Westchase in Beaumont, Barrington Heights in Beaumont, and Fairfield in Beaumont.  Interesting that there haven't been any new construction sales in Lumberton that closed for over $120 per square foot this quarter.

Here's a graph that shows the range from low to high.

 

It is a pretty safe bet if you want to buy new construction in Southeast Texas you will need to budget at least $100 per square foot of living space that you desire.  If you add some bells and whistles and a prime Beaumont location be prepared to spend around $120 per square foot.  If you really want the newest and best materials then you'll be pushing the $130 per square foot mark. 

Now the builders aren't going to tell us what their profit margins are but I've seen them knock about $8 per square foot off once a home has stayed on the market a couple months.  Two years ago that was not seen in Southeast Texas.  In 2006, Builders didn't have to negotiate.  Full price or no sale.  That was then.  2009 is a whole new world.  Buyers have a lot more control.  We don't know how long the builders will continue taking offers but its safe to say until the economy starts to pick up and the inventory number start to decline home builders will still be considering all reasonable offers. 

One last piece of information to chew on.  Southeast Texas isn't home to any of the national builders who use the economies of scale to their advantage.  In Houston for example you can find new construction for less than you can in Southeast Texas.  Here you'll find a much smaller group of home builders but the flip side of that is you will get a higher spec level in a Southeast Texas home.  New home buyers can expect granite counter-tops, tray ceilings, crown molding, covered porches and that's just naming a few upgrades that are common in the area.  

So if you think $120 a square foot seems high, its not if you are buying new construction in Southeast Texas.

New Construction - Active and Sold - In Southeast Texas this Quarter

Here's a post that was requested.  The request asked a big question, "What is the cost of new construction in Texas?"   This one is going to be a multi-part post.  So here we go.  Since May 2009 there have been 38 sales recorded in the Beaumont MLS that are classified as new construction.  There are 23 sales pending - under contract- but not closed as of this post.  And there are 116 active listings that are classified as new construction. 

Part one of this answer will deal with areas in Southeast Texas where there are new construction homes for sale and the areas where the most sales have occurred.  Here's a graph.

 

Most of the new construction is in Beaumont and Lumberton.  Not a surprise for the locals.  Those have been the main residential growth areas for a while now.  Its good to see there is some new construction at the beach. 

Its also interesting to see the median price of new construction by area and the median price of homes that have sold since May. Here's a graph for that.

 

The highest median sales price is still in Beaumont on the west side of town.  The beach and Pinewood have higher asking prices for new construction but no sales this quarter.  Average days on the market for new construction sales is 128.  The average sale price for the whole Southeast Texas market is $237,000. 

Now to really get to the heart of the question that I was asked, "What is the cost of new construction in Texas", we really have to look at the price per square foot that the builders are building for and the price per square foot that they are selling for.  With 177 new construction homes that's going to take me a bit more time to input and analyze the price per square foot data. 

Once we can see the price per square foot -by area this will really tell us what builders are willing to build for and what they are willing to sell for.   The analysis will give you a really good idea of the cost of new construction in Southeast Texas.  I know your dying to know more, so tune in tomorrow.

Find The Best Southeast Texas Home Builders

Having a custom built home built from scratch just the way you imagine it is a dream for a lot of home buyers.  Finding a reputable builder to build it for you can be a nightmare. 

One way to make sure your home building dream is a pleasant experience is to check out several builders before you sign anything or put down a deposit.

A great place to start your home builder search is the BBB Southeast Texas Home Builders  guide.  These home builders are members of the local Better Business Bureau.  From the BBB reports you can check out a builders reputation and read any complaints that have been filed by unhappy consumers.  

You can also research the Southeast Texas Home Builders Association for more information on local home builders.  

Before you finish your research and select a home builder to build your dream home, make sure to see if they are a member of The Texas Residential Construction Commission.   

Once you've checked the Southeast BBB, the Southeast Texas Home Builders Association and the Texas Residential Construction Commission you ought to be a well-informed consumer.  Of course its always good to have friends, co-workers, and even local real estate professionals recommend the builders they have worked with.   Southeast Texas home buyers looking to find the best home builders in the area have plenty of choices when it comes to local home builders.  The BBB has over twenty-five builder members to select from.  Spend a little time doing your research and you'll make sure your building your dream home is a dream come true not a nightmare.

What's New! New Construction In Lumberton, Texas

As you may know by now, I'm a fan of graphs.  Its an easy way to convey a lot of information.  New construction is a hot topic in the real estate business.  People like to buy brand new homes.  Fortunately, for you new home buyers out there we have a good selection of new construction throughout Southeast Texas. 

• 137 properties are listed in the Beaumont MLS as new construction.
•   About 30% of the new homes available in the area are in Lumberton

Here's a cool chart to help you compare neighborhoods in Lumberton.  Color coded by Neighborhood.  You can see what you will be paying for square footage that has never been lived in by anyone other than you.

The highest cost per sqaure foot is in Grace Lake Estates, followed by Silvercrest and Stonegate.  The most affordable cost per square foot is Westwood.  If you want all the perks that come with a brand new home (fresh carpet smell is the best) then be prepared to pay.  Since Southeast Texas is not home to any of the BIG production home builders out there, our new home buyers are paying more than buyers in towns where the big guys build.  Its not uncommon to pay less than $90 per square foot for brand new construction in the Houston market. 

One advantage new home construction buyers in Southeast Texas have is that our local builders generally build to a higher "spec level" than the production builders do.  You can expect to find tray ceilings, crown molding, tile, granite and upgraded architectural detail on the new construction homes in Southeast Texas.  In other markets those are all upgrades. 

If you aren't from the area you won't recognize the names of our local builders. Right now in Lumberton the following builders have homes ready and available for purchase.

• Bassa Homes
• Lee Grantz
• Just Construction
• HR Homes
• DJM Contractors Ltd
• Beard Homes
• AAA Homebuilders
• S.E.T Construction
• G C Builders
• Merrill Builders

Texas Residential Construction Commission keeps track of builders who are licensed and in good standing in the state.  You can search for builders in any town or neighborhood.  Lumberton builder search results are posted for your review.

Its good to know TRCC is watching out for the consumer and making sure the builders remain in good standing.  Its also good to know if you are looking for new construction in Southeast Texas you have a good selection of homes and builders to choose from. That's what new in new construction in Lumberton, Texas.