RECON for November 26, 2019RECON for November 26, 2019Bryan PopePope

RECON Real Estate Center
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November 26, 2019

HAR: Most Houston home sellers work with Realtors over iBuyers

​​HOUSTON (Houston Association of Realtors) – One-third of local current, recent, or future home sellers were aware of the iBuyer concept this year, according to the Houston Association of Realtors' (HAR) 2019 iBuyer Consumer Survey. ​​​​​

​Nearly four in ten of current sellers were aware of the iBuy​​er sales option, and 41 percent considered an iBuyer approach. However, 92 percent of survey respondents have chosen to work with a Realtor. 

Around 39 percent of respondents were either somewhat/very/extremely likely to work with an iBuyer in the future. ​ ​

The main reason for engaging with an iBuyer service was to get a read on the selling price of the home, respondents said. However, iBuyer fees are typically higher than average real estate commission rates, and homes are projected to sell for 11 percent less through an iBuyer method than through traditional methods. Other reasons for rejecting an iBuyer service include the fear of the program being illegitimate or the service not buying homes in the seller's area/price point.

For respondents not satisfied with the traditional home-selling process, four key drivers affected their dissatisfaction: time it took to sell, not enough interested buyers, not enough offers received, or offers were two low. Consumers who were dissatisfied were twice as likely to say they would use an iBuyer service. 

Respondents who ​were satisfied with the traditional sales process had positive attitudes about the responsiveness, service, and support they received from their Realtor. They also were satisfied by the education they received from their agent and the amount of homeowner effort required in the process.​​​​​

97-acre community planned for SA's far west side

SAN ANTONIO (San Antonio Business Journal) – PMI is leading the development of Vicinia, a 97-acre master-planned community near Potranco Rd. and W. Military Dr.

The infill project will include retail, office, and civic spaces as well as multifamily units. A two-acre, tree-lined town square will be its centerpiece.

Multiple developers are on the project team.​

Construction of streets and utilities will be complete by July 2020. Vertical development will start next year.
sunny street in downtown abilene
The Key City is home to several universities and an Air Force base, so it stands to reason that the residential rental market plays an important role in the area's overall housing market. Learn more in "Abilene: Population Growing, Housing Cooling."

Austin home sales shatter October records

AUSTIN (Austin Board of Realtors) – Although the inventory of single-family homes dropped to an all-time October low, home sales experienced a double-digit percent increase in the metro, according to the Austin Board of Realtors. 

Last month, single-family home sales increased 16.8 percent to 2,721 sales. The median sales price increased 7.4 percent to $327,000.

The metro's ​escalating demand and record-breaking median home price resulted in a 23.3 percent increase in sales dollar volume, raising October's total to $1.1 billion.

New listings increased 8.4 percent to 3,067 listings, while active listings decreased 12.1 percent to 6,381 listings. Pending sales jumped 25.3 percent to 2,866 pending sales.

Housing inventory decreased 0.5 months year over year to 2.3 months of inventory. 
Communication Matters video seriesThe Real Estate Center's Texas Home Price Index measures price appreciation changes for residential single-family homes. It provides data for eight different Texas metros across three different price ranges.

Stream acquires 333 acres for Empire West Business Park

BROOKSHIRE (Houston Business Journal) – Stream Realty Partners has purchased 333 acres at the northwest corner of I-10 and Woods Rd. for the development of Empire West Business Park. 

The property will be built in three stages. The first phase will focus on construction of two 150,000-sf buildings and a third one totaling more than 750,000 sf.

Phase two will focus on landing tenants for built-to-suit projects. 

​Stream has partnered with Simpkins Group, who initiated the property’s development. Houston-based McMillian Interests was the seller. 

Phase one will begin in early 2020. 
NewsTalk Texas logoHungry for more Texas real estate news? Then feast your eyes on NewsTalk Texas, our online news database. Here are a few of the stories you'll find there this week: NewsTalk Texas is updated each weekday, throughout the day. 

Quadrant brings major mixed-use development to SA's East Side

SAN ANTONIO (San Antonio Express-News) – Dallas-based Quadrant Investment Properties is working on East End, a mixed-use development on five acres at 1220 E. Commerce St.

The project will include a six-story, 187,000-sf office building, a 40,000-sf retail building, and a 700-car parking garage.

Office amenities will include a rooftop deck, fitness center, coffee bar, restaurant, conference room, boardroom, and private meeting rooms.

Construction will start in July 2020. 
monthly review - october 2019
Read more in our latest Monthly Review of the Texas Economy report. 

16-story Deep Ellum mixed-use tower underway

DALLAS (Dallas Morning News) – Hines is building a retail and office tower in the Deep Ellum district on Commerce St.

Called The Stack, the 16-story mixed-use project will include 15,000 sf of street-front retail space, 200,000 sf of offices, and a 640-space parking garage.

The building will have terraces on each floor and a sky lounge on the upper floors.

Designed by 5G Studio Collaborative, the tower is being built in partnership with Westdale Real Estate Investment and Management and Ivanhoe Cambridge.​​

Opening is set for​ early 2021.
From mortgage interest rates to rates of return on commercial investments, the impact of U.S. monetary policy on real estate markets can't be overstated. Find out why by reading our latest article, "Markets & Money: Real Estate and Monetary Policy."

106K-sf H-E-B coming to Kerrville

KERRVILLE (Connect Media) – H-E-B is developing a 106,000-sf store on Main St.

The store will feature an expanded frozen department, Meal Simple ar​ea, pharmacy, bakery department, demonstration kitchen, and barbeque restaurant. 

It will replace the current 79,000-sf store at 300 Main St., which opened in 1984.​​​

Construction will be complete by late 2020. 
Sketchy drawing of commercial buildingsThe Real Estate Center's Texas Quarterly Commercial Report looks at past, present, and future commercial real estate activity in the state's four major metropolitan areas. It covers the office, retail, and warehouse sectors. Read and download the report for free, and subscribe to know when the next issue is published. 

Athena Domain builds 300-unit South Flores Lofts 

SAN ANTONIO (San Antonio Business Journal) – Athena Domain is developing South Flores Lofts, a 430,000-sf multifamily complex at 205 E. Cevallos St.

The $58.4 million project will have 292 units and an attached parking structure.

The complex will include a mix of affordable and market rate units.

Earlier this month, the project received a non-binding inducement by the housing trust, which will provide a property tax exemption. 

$140M Ventana high-rise senior-living community opens

DALLAS (REBusiness Online) – Buckner Senior Living has opened Ventana by Buckner, a 301-unit seniors housing community at 8301 N. Central Expy.

Designed by D2 Architecture, the $140 million project features two 12-story towers that house 189 independent-living, 38 assisted-living, and 26 memory-care units as well as 48 nursing apartments.

Apartments range from 950 to 2,000 sf. ​​​
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Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Hayley Rieder. The Real Estate Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.

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