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    Real Estate Rumblings

    The cupboard is bare: Houston home sales show first decline in three years as prices reach all-time record

    Ralph Bivins
    Jun 11, 2014 | 11:24 am
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    Houston home sales show have shown the first decline in three years but prices remain high because of the lack of inventory.
    Courtesy photo

    A lack of inventory has put a damper on the Houston housing market winning streak as sales declined in May — the first decline in three years.

    The Houston Association of Realtors reports 7,145 single-family homes sold in May, a 7.3 percent decline from the 7,708 Houston-area homes sold last May.

    Even with the decline from a year ago, sales remain exceptionally strong. Monthly sales have surpassed the 7,000-mark less than a dozen times in Houston’s history, so May was still excellent. But the inventory of homes for sale has been extremely low for more than a year, picked clean like the shelves of a grocery store.

    The inventory of homes for sale has been extremely low for more than a year, picked clean like the shelves of a grocery store before a hurricane.

    "It was just a matter of time before our depleted supply of inventory caught up with us," says HAR chair Chaille Ralph with Heritage Texas Properties. "This is Economics 101: Supply and Demand. Until more homes are listed for sale and new housing is built, it’s a safe bet that there will be further sales declines and more demand for rental properties."

    The limited supply of homes for sale pushed home prices upward. Houston hit an all-time record in May with the median home reaching $200,000, the realty association reported. The average home price was $280,346 in May – the highest average home price in Houston’s history and a 10 percent increase over the average price of $255,855 reported last May.

    Driven by a dramatic rise in domestic energy production, Houston's economy has been surging in the last two or three years, ranking among the nation's leaders for population gains and job growth. The boom created shortages in housing supply, both rental homes and apartments and homes for sale. The home building industry was caught flatfooted without sufficient supply of lots and few new subdivisions were developed in the wake of the recession. Many home builders report a lack of skill labor because workers left home construction during tight times.

    In many Houston-area neighborhoods, homes sell quickly, often drawing offers from several buyers within hours of being placed on the market.

    Houston has a 2.8-months supply of homes for sale, down significantly from a year ago. By comparison, the national supply of 5.9 months of inventory.

    Rental housing is the alternative when there are few homes to be purchased. Single-family home rentals shot up 20.4 percent compared to May 2013, the Houston Realtors organization reports.

    Ralph Bivins, a former president of the National Association of Real Estate Editors, is editor of Realty News Report.

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    Houston's Historic Mansion

    This $11.5 million Houston mansion brings historic luxury — and the legend of the indoor home skating rink

    Barbara Kuntz
    Barbara Kuntz
    Jul 6, 2014 | 8:24 am
    This $11.5 million Houston mansion brings historic luxury — and the legend of the indoor home skating rink
    Photo courtesy of © TK Images
    Welcome to Malvern, located at 7 Winston Woods.

    Editor's Note: Houston, the surrounding areas and beyond are loaded with must-have houses for sale in all shapes, sizes and price ranges. In this continuing series, CultureMap snoops through some of the best and gives you the lowdown on what's hot on the market.

    Malvern Estate at 7 Winston Woods, one of Houston's grandest John Staub-designed homes, is now up for sale. It carries a $11.5 million asking price and boasts direct ties to old Houston society of the rich, educated and sophisticated — and lots of oil men.

    A bit of background
    Malvern was completed in 1938 by Staub for late Houston businessman James O. Winston Jr. The acreage was carved from equestrian property owned by the late Stephen Power Farish of Humble Oil and his late brother, William Stamps Farish II, former president of Standard Oil.

    William Stamps Farish II brought Staub to Houston in 1921 when he was a young architect in New York. Staub’s inspiration for Malvern came from The Wick, an 18th-century late Georgian house in Richmond, Greater London.

    Winston Woods’ private road is bordered and curbed with Belgian block cobblestone from the streets of lower Manhattan.

    Staub is reported to have traveled with the Winstons to England to acquire some of the antique elements that now grace Malvern. In addition, Winston commissioned Houston Brick & Tile Co. to reproduce the sand-surfaced bricks at the Governor's Palace in Williamsburg, Va., for the Houston estate The wall enclosing Winston Woods also was inspired by the wall surrounding that post-colonial building.

    The present owners purchased Malvern and its original 12 acres from the Winston family in 1997. Since then, they subdivided the property to create the 12-acre Winston Woods, a gated enclave of eight home sites and private nature preserve. Their comprehensive, research-driven restoration and detailed modernization was a 14-year project.

    The house
    Original hardwood floors, inlaid with parquet patterns, extend from the rotunda foyer throughout the house. Highlights in the formal living room include a centrally framed ceiling panel with trompe l’oeil sky distract and antique fireplace with an ornate marble frieze carved with mythological figures. The dining room overlooks the terrace and park.

    The more informal morning room is bright and lively with Brunschwig & Fils-covered walls, and the library is paneled in rich mahogany. The spacious kitchen is up-to-date and professionally equipped, with a cozy family room just steps away.

    On the second floor, the master suite has access to a rear balcony and includes two updated bathrooms and dressing areas with custom walk-in closets. Also on the second floor, four additional bedroom suites offer private bathrooms and walk-in or multiple deep closets. The Winstons left the third floor of the house floored but not finished, and their children (reportedly) used it as an indoor skating rink.

    Re-purposing its original, long-leaf pine planks, the present owners converted the large open space into two dormer bedrooms. In total, the house has nine full baths and four half-baths.

    The grounds
    Lush parterres near the kitchen are stocked with culinary herbs, mature fruit and berry trees and perennial flowering plants. Pennsylvania green stone terraces surround the house and transition to stacked-stone and brick paths that travel to a contiguous 2.134 acre wooded, restricted reserve and to the bayou. There, owners enjoy a flagstone waterfall, flowing pond and a fire pit.

    The guest quarters above the three-car garage was constructed almost entirely from reclaimed materials salvaged from the original garage and its second-floor living quarters.

    Winston Woods’ private road is bordered and curbed with Belgian block cobblestone from the streets of lower Manhattan. When those streets were renovated in the late-20th century, 60 tons of cobblestone was purchased and shipped to Houston by rail for Winston Woods.

    Square footage: 10,153

    Asking price: $11.5 million

    Listing agent: Steve Baumgardner, John Daugherty Realtors

    Welcome to Malvern, located at 7 Winston Woods.

    On the Market 7 Winston Woods July 2014 front exterior from driveway
    Photo courtesy of © TK Images
    Welcome to Malvern, located at 7 Winston Woods.
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