Buyers show interest in large lots, foreclosures and short sales
As with the Greater Houston area, home sales in Tomball and Magnolia increased in 2011 compared with 2010, and Realtors have high hopes for 2012. Home sales in Magnolia increased by 9 percent in 2011 and by 1 percent in Tomball, according to the Houston Association of Realtors. The Greater Houston area saw a 4 percent increase, which represented the first year of growth in four years.
"Both Tomball and Magnolia have good schools, low crime and a lot of small town community pride," said Chris Hardee, who has operated the Century 21 Hardee Team in Tomball and Magnolia since 1994. "Families feel safe and secure here, and they like that they have more elbow room than they get in Houston."
Magnolia land
According to Magnolia area Realtors, prospective buyers are primarily attracted to the area because of the large tracts of land, ranging on average from a half-acre to two-acre lots.
"It's probably about as close as you can get to Houston and still be on a little bit of land," said Noreen Arleth, who has been a Century 21 agent in Magnolia since 1996.
Leslie Sullivan, a ReMax agent in the Magnolia Parkway area, said the opening of H-E-B at FM 1488 and the widening of FM 1488 to a four-lane road—both completed in fall 2011—have been advantageous to the area.
"I think we have it all—the convenience to shopping, locally owned businesses and great schools,"she said.
Lisa Carswell, owner of Carswell Real Estate in Magnolia, said she estimates her sales were up 15 percent in 2011 and the majority of sales came from selling large pieces of property.
"Magnolia still has a lot of land to build on, and there's more available space here," Carswell said.
Magnolia Ridge, the newest subdivision in the city, has seen eight homes sell in 2012 so far, after a slow start in 2011.
"It's starting this domino effect. Depending on how we evolve, we'll probably have around 1,200 home sites by the time it's all done," said Danielle Bennight, sales manager for Magnolia Ridge.
Tomball's first-time buyers
Realtors in Tomball attribute home sale increases in large part to foreclosures and short sales, which are attractive to investors and first-time homebuyers.
"Around 20 percent of buyers are investors—there's never been a better time to buy a house since I've been in real estate," Hardee said.
David Leavell, an agent at Hardee's Tomball office, said he works with many first-time homebuyers looking for a home in the $75,000–$120,000 range.
"We're seeing a big influx of new buyers, and it's mainly people who've been renting homes," he said. "Because interest rates are so low and there is so much in that price range, their [mortgage payment] can cost less than they've been paying in rent."
Buyers with credit ratings as low as 590 can qualify for a $100,000 loan and only have to pay 3.5 percent down, he said.
"It's very rewarding to find someone like that, get them into a decent home and make them a homeowner," he said.
Challenges
While any uptick in sales is positive in today's housing market, challenges remain. One of the main problems Realtors site is people overpricing their homes.
"It's a buyers' market, so if you're asking too much for your house, it's going to take a long time to sell," Hardee said.
Eight months is the average time it takes a house to sell in Tomball and Magnolia, according to area Realtors. A challenge in the Magnolia area is a low inventory level of large properties, according to Arleth.
"The newer homes being built are on smaller lots and people are looking for acreage," she said "People have kind of been afraid to list—we can definitely use a lot more listings and more houses on the market."
