HOUSTON — (By Dale King, Realty News Report) – Houston-area master-planned communities led the nation in new home sales in a strong mid-year report, showing robust buyer activity despite the COVID-19 pandemic, according to RCLCO Real Estate Advisors.
Ten Houston-area master-planned communities placed on RCLCO’s Top 50 list of leading new home sellers in the midyear report.
Together, Houston’s 10 communities accounted for 2,853 new home sales through the first half of the year. Las Vegas ranked second with 2,028 new home sales.
Houston Leads the Nation in MPC Home Sales. Houston’s top-selling master-planned communities are:
- 10. Bridgeland, Cypress. Developer: Howard Hughes Corp. Sold 425 homes, up 21% from 351 in 2019.
- 12. Balmoral, Houston. Developer: Land Tejas. Sold 409 homes, up 143% from 168 in 2019.
- 16. Tamarron, Katy. Developer: D.R. Horton. Sold 327 homes, up 99% from 164 in 2019.
- 23. Sienna, Missouri City. Developer: Johnson Development/Toll Brothers. Sold 298 homes, up 6% from 281 in 2019.
- 29. Sierra Vista/Sterling Lakes, Arcola. Developer: Land Tejas. Sold 261 homes, up 67% from 156 in 2019.
- 37. Harmony, Spring. Developer: Land Tejas/Johnson Development. Sold 235 homes, down 19% from 2019.
- 39. Cross Creek Ranch, Fulshear. Developer: Johnson Development Corp. Sold 230 homes, down 12% from 2019.
- 42. Elyson, Katy. Developer: Newland Communities. Sold 220 homes, up 7% from 206 in 2019.
- 43. Harvest Green, Richmond. Developer: Johnson Development Corp. Sold 225 homes, up 20% from 187 in 2019.
- 45. Lago Mar, Texas City. Developer: Land Tejas. Sold 216 homes, up 41% from 153 in 2019.
Lower mortgage rates this year — with 30-year mortgage offers drifting closer to 3 percent — encouraged many buyers to enter the housing market.
Dallas placed six master-planned communities in the top 50: No. 28 Pecan Square (Northlake); No. 30 Union Park (Addison); No. 32 Wood Creek (Fate); No. 34 (tie) Silverado (Aubrey); No. 41 Viridian (Arlington); and No. 48 Trinity Falls (McKinney).
Austin had three MPCs in the top 50: No. 16 (tie) Sunfield (Buda); No. 24 Easton Park (Austin); and Santa Rita Ranch (Liberty Hill).
San Antonio placed one community in the top 50: No. 36 Valley Ranch.
Florida swept the top three positions in the Top 50. The Villages, a retiree-oriented community, led the list with about 1,000 new home sales at midyear, maintaining its position at the top of RCLCO’s ranking. Lakewood Ranch in Sarasota took the number two spot overall and remains the top-selling multi-generational community, pacing about 2% ahead of last year at midyear. Wellen Park (formerly West Villages) in Venice increased its mid-year new home sales pace by 1% compared with 2019 and placed third overall.
“Total new home sales among master-planned communities tracked in both our 2019 mid-year survey and 2020 mid-year survey are up over 16%, despite the economic impacts of the COVID-19 pandemic,” said Karl Pischke, vice president, and Gregg Logan, managing director of RCLCO Real Estate Advisors.
“The 50 top-selling master-planned communities in the country sold almost 7% more homes than the communities that made up last year’s Top 50 list,” the authors noted, adding that the specific communities in the Top 50 change from year to year.
While Florida captured the top three positions, Texas showed strong performance across many markets. The Lone Star State accounted for 20 master-planned communities in the Top 50, including 10 in the Houston area.
RCLCO’s mid-year 2020 advisory report states: “Texas and Florida combined account for 61% of total sales among the 50 top-selling communities. Texas leads all other states in terms of total MPCs represented on the list with 20 MPCs among the ranks of this mid-year’s top-sellers, up from 11 this time last year.”
RCLCO highlighted migration and market leaders: “Texas is experiencing significant migration from high-tax states such as California. Florida continues to dominate the very top of the list (The Villages, Lakewood Ranch and Wellen Park). Outstanding performances from Daybreak in the Salt Lake City MSA and Cane Bay Plantation in Charleston, S.C., put a spotlight on those markets.”
The report summarized 2020’s trajectory: “It began as a strong year for new home sales across all categories, with sales up almost 22% in January compared to a year earlier. By March, that pace had slowed, but data from the U.S. Census through the end of the first quarter still showed a 4% increase over the same period last year.”
“Consumer concerns, state and local stay-at-home orders, and quarantine measures reduced physical traffic to sales offices in March and early April, causing sales to fall substantially at most MPCs and across the market. But after dropping dramatically in late March and early April, sales rebounded in the last two weeks of April, and that recovery continued into May and June,” RCLCO reported.
A master-planned community is defined as a large-scale residential neighborhood that integrates recreational and community amenities such as golf courses, tennis courts, lakes, parks, playgrounds, swimming pools, and often includes retail and dining options.
July 15, 2020 Realty News Report Copyright 2020
File: Houston Leads Nation in New Home Sales. Image: Bridgeland – OJB
Correction: Bridgeland reported 425 sales, up 21% from 2019. An earlier version was incorrect.