“Supply and demand have long been the underlying factors in establishing the basis of value for any product bought or sold. In the real estate market, supply of waterfront property on Lake Conroe is running scarce, and demand has never been higher.” A quote from an article in the Houston Business Journal, January 25, 2002, this statement has proven to be profound and TRUE!
In perusing this well worn article I have kept for 8 years, I marveled at the reality of all that was written. As we all know, Lake Conroe was constructed in 1973 or there about, and has long been known as “Houston’s Playground”. It provides a near-by escape and slower pace from the hustle and bustle of big city life.
Many Houstonians and others around the world paid as little as $7,500 for waterfront lots during the early 1970’s. When the article was written in January, 2002, prices for waterfront home sites ranges from$100,000-$200,000; with some as high as $500,000.
The prediction of the author was that the “hyper-appreciation on waterfront valuations” was not expected for several years. He went on to make the statement, “…and it will cost an estimated $1 million for land and home to live on Lake Conroe.”
Guess what, folks? That prediction has come to fruition. Researching the Houston Association of Realtors® Multiple Listing Service, I found that waterfront lots SOLD from a range of $15,000-$595,000 in 2002. The $595,000 sale was for 3.73 acres on Lake Conroe. From January, 2010-July, 2010, waterfront lots have SOLD from $39,900-$1,200,000. That is just for the site to build a home.
Actually, lots sold for $155,000-$165,000 in 2002 have sold in 2010 for $450,000. Pretty good investment? You bet!! Where can you go to get that much return on your investment?
Residential waterfront properties have escalated in value since the development of Lake Conroe. Of course, that is to be expected! Since January of 2010 there have been 95 waterfront homes SOLD, ranging in price from $178,000 to $2,475,000. With that much diversity, there is something for almost everyone on Lake Conroe.
Of those SOLD, 7 were purchased for $1,000,000-$2,475,000. Don’t you think this indicates that the rich are loosening their purse strings? The economy is making a comeback in this area!
According to the article, approximately 35 percent of Lake Conroe’s shoreline is unavailable for development because it is bordered on the North end by Sam Houston National Forest. In 2002 only two-thirds of Lake Conroe remained for development. Today, I would predict that very little is available for development. There are only a handful of small tracts that possibly could be urbanized.
Certainly, this is an indication that property on Lake Conroe is a scarce commodity! Both investors and residential buyers are faced with diminishing opportunities for owning waterfront property on Lake Conroe at reasonable prices.
All in all, the truth is that real estate continues to be a solid investment in Montgomery County.
Contact the Franke Team for commercial or residential real estate. Website and blog: www.franketeam.com ; phone: (936)-647-4400.
