Home prices declined in many of Houston's hottest communities in the third quarter, as buyers headed to the suburbs for affordable, new construction.
A Houston Association of Realtors ranking of the "hottest" market areas in the third quarter finds that all but one of the top 10 are in the suburbs and prices in six were below the area's average of $415,435 in September.
"The demand for new construction homes in the Houston area is steadily rising due to their affordability and modern amenities," HAR Chair Thomas Mouton said in a report. "As more buyers seek out value and convenience, I believe there will be further growth in the new home market in the months ahead."
TOP COMMUNITIES: Houston's top-selling master-planned communities
Buyers purchased more than 1,700 mostly suburban homes within a 50-mile radius of Houston in the 10 hottest communities, attracted by master-planned communities rich in amenities and good school districts. New construction made up more than 65% of the sales in the top 5 communities.
The hottest community, according to HAR, was Brookshire, which was among four in the top 10 with an increase in the average sales price. The average price in Brookshire jumped 15% over the year to $342,159 in the third quarter.
Here are the top-selling designated communities according to HAR, from bottom to top.
Prices in this community about 40 miles northeast of Houston near the Grand Parkway rose 9% over the year to $331,768. Sales rose by 30% with 117 transactions including many in the River Ranch Meadows neighborhood.
This established neighborhood inside Beltway 8 in northeast Houston saw sales rise 33% to 40 transactions with an average price down slightly to $478,337.
The community east of Houston was No. 8 with 92 sales, an increase of 37%. The average price was up 2% to $300,633.
Sales in one of Houston's most popular neighborhoods rose by 45% to 58 despite the average price rising 15% to $882,917.
Fulshear/South Brookshire/Simonton posted the most sales among the top 10 with 331 transactions in the third quarter. The region, home to top-selling communities of Tamarron and Cross Creek West, ranked No. 6 with sales volume up 46%. Homes sold for an average of $489,212, down 3%.
About 45 miles northwest of Houston, it is home to the Magnolia Ridge and Audubon communities and had a sales increase of 55% to 309. The average price fell 14% to $447,281.
Sales here rose by 71% to 317, with Tavola West and the Highlands driving the gains. Homes here sold for an average of $304,739, down 10%.
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About 50 miles north of Houston, this community ranked third with a 75% jump in sales to 270. Prices averaged $272,658, down 7%. The new Moran Ranch development in Willis generated the most sales here.
This community about 45 miles northwest of Houston off U.S. 290 saw a 77% increase in sales in the third quarter. Oakwood Estates and Beacon Hill were popular among buyers, who paid an average of $385,484 for 92 homes sold, down about 4%.
Sales here, about 45 miles west of Houston, more than tripled in the third quarter. The community posted 118 sales, up from 33 in the same period a year earlier. Most of those sales were at the 2,300-acre Sunterra master-planned community. Among other new Brookshire communities spurring sales are Bluestem and Aurora.