HOW DOES THE NEW CONSTRUCTION IMPACT MY HOME VALUE IN MUELLER?
In the past 45 days I have listed four homes in Mueller Austin (two David Weekley Row Homes, one Streetman Yard Home & one Standard Pacific Yard Home), all of which went under contract within the first week on the MLS and with multiple offers, to boot. To say the market is hot here is an understatement. But with all the new construction on the horizon and sales under way, what does this mean for the value of existing homes? And will the resale market still be so hot?
It’s not quite as simple as a yes or no answer, and that’s attributed to the variety of housing types we have in Mueller Austin. In Section 6 there will be 221 new homes and this will include:
- 30 Yard Homes on 37′ x 90′ lots (market rate)
- 42 Garden Homes (mix of market rate & affordable)
- 111 Row Homes & Courtyard Row Homes (mix of market rate & affordable)
- 14 Shop Houses
As we know, David Weekley has already started writing contracts and taking lot hold reservations for their Yard & Garden Homes. Last I heard, all six homes Yard Homes that were immediately available to write contracts on, were taken and they are already a few people deep on some of their lot holds (if you’re interested, don’t be discouraged – by the time they get to writing contracts on the homes with lot holds, lots of folks’ plans will have changed by then, giving you a better chance than you think).
Standard Pacific will start writing contracts in August on their 15 new yard homes. If the rate at which David Weekley is writing contracts is any indication of what it will be like when Standard Pacific releases their homes – and I believe it is – then these will be gone before we know it.
At first glance, it might look like the builders are slightly undercutting the current market value in regards to pricing. But you have to remember to compare apples to apples. Introductory pricing is just that – without options or lot premiums. Also, the base prices will likely go up as they write more contracts.
What does this mean for Yard Homes resales? For the number of houses being built, 30 yard homes is not a lot and the demand in Mueller is high. Looking strictly at the numbers, resale Yard homes won’t have much competition from new construction so, realistically the impact looks to be relatively minor. Additionally, the largest homesites in Section 6 are 37′x90′; there are homes built in the first couple phases of Mueller that are on 45′ and 55′ wide lots – these types and sizes of homes won’t be offered at all in the next section, making the existing ones that much more valuable.
What about Row Homes resales? Well, that I believe will be a different story. Because Section 6 is so close to the town center, Catellus (the developer) has planned to have more, higher density product in the surrounding area. This means we’ll be looking at 111 new Row Homes coming on the market. Obviously, the inventory will be high (relatively speaking) meaning that Row Homes going on the resale market will have a lot more competition. Builders also often provide incentives such as paying title policy and 1% towards closings costs that can sweeten the deal for potential buyers. Not to mention, buyers have a tendency to like shiny and new, when given a choice. All that being said, pricing will be crucial when considering the sale of your Row Home over the next year or so.
Get in touch if you want to understand your home’s value in the current market. Not only is there new home construction to consider but commercial amenities that will also play a role. Hilary Herrin, 512.913.8642, email@example.com