1. Nearly two years post-Hurricane Harvey, demand for flooded homes is strong
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2. Harvey-damaged homes see up to 21% increase in appraised values in 2019
Following a reduction in appraised value for Hurricane Harvey-related damages in 2018, Harris County homes that flooded during the August 2017 storm may have seen up to a 21% increase in appraised value in 2019.
The Harris County Appraisal District reduced the appraised value for 40,852 homes in Harris County in January 2018. Of those, 27,980 homes had a homestead exemption, which is needed to qualify for the 10% appraisal increase cap, according to HCAD Chief Communications Officer Jack Barnett. The cap prevents the appraised value of a home from increasing more than 10% per year. Of the houses with homestead exemptions, 9,509 homes had completed repairs by Jan. 1, Barnett said.
Homes that received a lower appraisal in 2018 due to Harvey-related damage could now have been appraised based on their 2017 appraised value plus their 2019 appraised value.
Because appraisal values are determined on a case-by-case basis, values for those homes could have increased in 2019 by up to 21%, been lowered or remained the same, he said.
Flooded homes in Spring and Klein saw a decrease in their appraised values last year to account for Harvey-related damages, said Brenda Budd, residential field manager at Harris County Appraisal District.
“[After Harvey, we] ... found all these damages. ... [Say there was] $170,000 worth of repairs to do. Whatever that house value was for the improvement, we took off $170,000,” Budd said. “From there, we’re looking into appraised value—what the appraised value was ... the year before the storm.”
For example, a house that flooded in Wimbledon Champions had an appraised value of $254,976 from 2015-17 before dropping to $141,813 after Harvey, according to HCAD. The 2019 appraisal value for the house is now $263,944.
In mid-March, single-family home appraisal values were up an average of 9.63% across Harris County compared to last year, according to HCAD market trend data.
3. Demand for more affordable housing strong in Spring, Klein, real estate experts say
Homebuyers in Spring and Klein are targeting homes priced between $150,000-$250,000, while the demand for luxury homes has yet to return to oil-boom levels, according to local real estate agents.
“You have more people in that price point in terms of economics … and fewer people are able to afford [luxury homes], so there are fewer [luxury homes on market] and they stay on the market longer,” said Ginger Perry, a real estate agent at Texas Properties & Associates in Houston.
Homes less than $150,000 sell even faster, although they are usually homes that flooded, said Yvonne Chauvin, a real estate agent with Better Homes and Gardens Real Estate Gary Greene in Cypress.
“Anything below $150,000, those take no time to sell, but these are usually homes that have been flipped or distressed,” Chauvin said.
4. Breckenridge Forest, Silverglen North among Spring ISD’s fastest growing subdivisions
Spring ISD has seen about 600 new home sales on average per year for the last three years, according to a fall 2018 demographic report by Templeton Demographics. More than 400 new homes are forecasted to sell within SISD boundaries by fall 2019.
5. Oversupply of new homes tops demand in Klein ISD
Since mid-2017, the number of new homes available within Klein ISD boundaries has increased beyond the demand, according to a fall 2018 report by the Population and Survey Analysts demographics firm.
As of June 2018, KISD had an 8.5-month supply of new housing stock—meaning that the number of new homes available or under construction would likely be occupied in 8.5 months—according to PASA. Four to eight months is considered a balanced market.