The pricepoint for the new Mueller House Condos from Standard Pacific is agressive, as in low. Does this impact the resale values for other homes? In a previous article, How is the new construction at Mueller Austin affecting resale values I looked at the impact of the Garden Homes on resale values.
Let’s take a quick look at the the Mueller Houses. Each of the first five buildings has 4 units though there are two 6 unit buildings coming in the current phase of 12 buildings. There are three elevations: Brazos, Colorado and Sabine which all have subtle differences in pricing and styling and modest differences in layout. In each four unit building, half the units are income qualified and half are market rate:
Affordable Unit A: Ground floor, 2 bedrooms, 2 baths, 1 car garage. From 1316-1333sqft priced from $158,000
Affordable Unit C: Two story, 2 bedrooms, 2 baths, 1 car garage. From 1271-1295sqft priced from $157,000
Market rate Unit B: Two story, 2 bedrooms, 2 baths, 2 balconies, 2 car garage. From 2001-2032sqft initially priced from $265,000 to $271,000
Market rate Unit D: Two story, master down, 4 bedrooms, 3.5 baths, 2 car garage. From 2337-2417sqft initially priced from $305,000 – $311,000
The median base price per square foot on the market rate units is around $130/sqft which is low for the neighborhood. Compare this to the Greenway Lofts which are currently selling for between $283/sqft and $308/sqft, and to the resale town homes from David Weekley that are listed between $150/sqft and $190/sqft.
There are five more buildings which have not yet been released for sale yet – given the speed with which the first five buildings sold, it’s best to get on a notification / waiting list if you’re interested. Drop me a line and I can do that for you.
How is this impacting resale prices? It’s apples to oranges really – I rarely have clients who are looking for both a condo with no yard and a townhome or yard home, so they’re somewhat mutually exclusive. The positive effect of the condos are that they are bringing more buyers to the neighborhood – TV commercials from Catellus and the builders’ advertising too. Right now, people are buying from plans and renderings.
I would say that the biggest challenge presented by the Mueller Houses is to the townhome resale market. If a buyer is happy with attached living and wants zero yard maintenance, then the condos offer more space for less money. I’m sure the prices will increase as the units get built, and buyers can see inside the homes and get a feel for the floorplans, though they will still represent excellent value in a great location.