Welcome back to real estate mindset Today's video is going to be absolutely Boots on the ground and Bonkers and Where I'm at today is a massive massive Master plan Community you can see behind Me called tamarron now I went here Because this master plan Community is Entirely being built by DR Horton which Is obviously guys the number one builder In the nation and what I have seen from Touring this community is it appears That Dr Horton is actually grossly Overexposed at least what I'm seeing in This community of tamarron and really What today's video is going to be about Is essentially what area you should be Watching if you're interested in Purchasing in Texas specifically you Guys around the Houston area and I'll Pull up the map in a second but where I Want to start is by telling you the Characteristics of the houses we're About to see so the houses we're going To look at are anywhere from two to Three bedroom square footage is 300 to 1500 square feet another primary reason Why I'm here is the price point right Now for these houses is relatively low Probably the lowest in the Market at Under three hundred thousand dollars so We're in phase two in tamarron by DR Horton price points under 300 000 They're gonna build five thousand homes In this phase phase one they're gonna
Build five thousand total overall ten Thousand homes they plan on building Right here now they've only Built Probably less than 10 percent so this Community of Tamron you guys has a long Way to go now real quick let me pull up The map all right so we have the Google Map up now obviously we're going to Start at Houston we're gonna go west of Houston we're gonna follow the 10 Freeway now around KD we're going to go South of the 10 to this huge huge Community as you guys can see right here Called tamaron and again we're at phase Two because at phase two has a lower Price point more affordable price point And you know let me pan around here you Guys can see this road here going that Way are multiple multiple like massive Commercial developments being done There's an Amazon over there there's a Ross Distribution Center that way so There's a lot of jobs that way so what DR Horton is doing is they're trying to Conform to first-time home buyers over There now what I'm saying is this ain't Enough first time home buyers to fill This community and most home first-time Homebuyers can't even afford to buy Right now but what is happening According to the Reps you guys is Massive investor demand so we're in an Area master plan Community with massive Investor demand either way you guys like
The video I'm not a financial advisor And I hope you enjoy let's go alright Guys I'm walking down the street right Now of tamarron where there is massive Amounts of new construction hidden Inventory as you guys can see I'm coming From that street right there but all to The right of me you're gonna see framed Houses This is all off MLS this is hidden Inventory or better set just homes under Construction I think it's really Important to point this out because what I'm saying guys is we have a lot more Inventory in we have a lot more Inventory in our housing market than What is being listed on MLS because a Lot of this stuff again is not even Listed now as I'm walking through here Guys pay attention to the quality of Construction and really pay attention to How quickly they're basically getting The houses up here right nothing like Phoenix let me kind of pan around here You guys can see all behind me a lot of Cars let me kind of just show you I mean Down the street both sides of the street Massive amounts of construction you know The Lots look you know really really Wicked anyways guys some really really Amazing stuff now I'm really cautiously Walking through here because I have a Lot of equipment and you know obviously There's cars coming you know both sides
Like crazy but you guys you know look at These sites here basically they're using Cheap materials you know according to Them so they can pass you guys the Savings you guys see the you know behind Me you guys see all that nothing like Phoenix nothing like Las Vegas this is Like you know this is them basically Throwing stuff up here you know from the Looks of it you know because they need To sell these houses quickly But again this is kind of a more active You know construction zone right here a Lot of stuff going on all the stuff's to The right of me frame housing as you Guys can see again framed housing all Behind me All available to the left of me As you guys can see more completed Houses as you guys can see all right Guys so now what I'm going to do is Basically I'm going to pull up a Fred Economic data chart right now and I'm Going to go over with you guys basically What's going on around the nation According to Fred economic data as you Guys can see Fred updated this chart February 16th it's showing 1.67 million active homes under Construction now I want to point out That also includes rental properties now I'm lumping that together because as we Get more and more rentals hitting the Market obviously that's going to put
More and more stress on the housing Market in total but as you guys can see We have never had so much new Construction going on in the history of The United States either way you guys Stay tuned for the next scene all right Now let's talk about the existing Inventory because not only do we have a Whole bunch of houses under construction Off MLS we also have a whole bunch of Houses that are on MLS or even if They're not on MLS they are available to Be purchased now you guys can see all The way down there that is available to Be purchased now I'm walking down the Street right here I especially love the Streets you guys because there are signs On all of these houses so it's going to Tell us whether or not it is available Or not so this first house we have up Here as you can see behind me is Available you'll be able to see the sign Available I like these guys because There is no question that most of these Do not have a buyer lined up most of This are actually spec homes by Dr Horton and the other thing I'm Questioning any of these houses that say Sold because again remember historical Cancellation rate and interest rates Just went through the roof so this one Over here behind me as you can see does Say sold but again you guys I'm Wondering if that's even true because
Imagine walking down here in all of These houses you know showing available Now let me pan just so I can show you Where I'm walking down So you see all those signs look at see All those signs so it is listed so it Does tell us the status but again I Doubt half of the ones that say sold on Them are even sold to begin with now Again I'm walking by another one right Here this one is available you know There's the sign behind me you guys see That So again I'm hoping I'm not going to get A whole bunch of comments from some Haters saying they're not of you know These are all taken they're not Available because the reality is Dr Horton you guys now this one's available Right there that one is available let me Show you the sign There's the sign right there that says Available because again what this is Showing us right now is Dr Horton has Absolutely Overexposed themselves Because you know and they probably Started doing this construction when the Rates were at zero percent are you know For consumers two and three percent now That rates are in the sixes and even Seven percents it doesn't make sense for Builders to phase out like this normally They phase it now this one's showing Sold right here there's a sign you guys
You guys see that so this whole block to My right and also some of these houses To my left right here are all available Again some of them do stay sold but do You all really think that they're all Going to sell I don't think they're all Going to sell this is a ton of inventory This is just one section I'm gonna pull Up a Redfin chart right now you guys and Basically tell you guys where we're at As far as inventory okay now first of All let me pull this up as you can see We started this year at about 10 weeks Of inventory now fast forward I'm sorry We started this time last year at a Little over 10 weeks of inventory now Right now in Houston okay for all the Stuff listed we're at over 20 weeks of Inventory making it extremely extremely Close to a buyer's market right now as Far as months of Supply so really Astonishing you guys you can see this Whole thing it goes back all the way it Goes back let me show you All down there do y'all see that Pretty epic you guys there's an epic Amount of new construction going on Right now existing inventory that they Keep having to drop their prices a crazy Buying incentives and the thing is guys It's only going to get worse because They cannot slow down building houses All right guys so now what we're going To do is we're going to talk about price
Cuts and as you can see I'm actually at The sales office I'm actually at the Sales offices right now let me pan so You guys can see these are the DR Horton Models and sales offices and actually I Just went in there and you know you guys Here's the thing it never ceases to Amaze me how awful the customer service Is this guy wanted to argue about like Language and definitions and I'm just Like dude Like see ya like anyways you guys really Astonishing but here's the good news so These are 50 these are 45 55 and 65 foot Lots in this section again this is phase Two of tamaron now the price Cuts they Have redone all of their inventory all Of their price listings and basically Drop the prices to to under 300 000 but For the bigger houses with the Lots They're doing you know around the low to Mid 300 000 so really really amazing Price cuts that are not going to show Like on the surface like what Lennar Does because Dr doesn't really do that They don't want people knowing how much They're price cutting but they have been Price cut in this area because over that Way there's a bunch of jobs and they Want to basically all of the people Moving here they want to have price Points that are appealing to people in That demographic as far as income and There's an Amazon Tesla there's a whole
Bunch of businesses over there like I Told you guys but here's the thing but Not only that you guys not only are they Doing so it's price cuts and let me pan Around here so you guys can kind of see The different types of models but you Know they already started fire selling So the fire selling and the liquidation Those are the models right there you Guys In the liquidation you guys it's already Priced into the houses so this is really Good but I think that we're going to Start seeing more and more price cuts The further we get down in the air we're Still in February rates need to be Higher they need to sit here more again This is 10 000 homes they're building Maybe they have one tenth of that the Fire selling the liquidation the price Cutting will continue but on top of that They're also doing a rate buy down of 4.99 percent when they basically have Twenty thousand dollars in the deal Based on that buying incentive and you Guys know how the temporary buy Downs Work but a 4.99 it is temporary it does Make it a little bit more convenient the First and second year but essentially What happens is the money is put into Escrow from the buy down and that money Is used to help offset mortgage payments So we have a twenty thousand dollar Buying incentive in the form of a rate
Buy down we have massively shaved off Base prices and on top of that they're Also offering an additional 7 500 Towards closing costs so they're Starting to play ball you guys and the Thing is is like again interest rates Just shot up the tenure just shot up all Of the stuff that we're talking to them About because we went in there again Horrible customer service with Dr Horton Really shocking in just my opinion this Is why you do need representation these Guys are absolute garbage I don't know How to sell that is you know say that as Soon as they knew that were a realtor's Like oh we don't want to you know Respect you we don't want he's like oh Don't worry about these prices for the 55 of the don't worry about these prices On the 45-foot lot so you know I'm just Going to tell you guys in Tamron phase Two this sales office right here beware Horrible customer service right there Very difficult to get information out of Them uh we did go to phase one as well Phase one is also doing the same Incentives much more respect on phase One this guy very difficult to deal with And that's part of your realtor's job Right is to fight these battles but Again you know what I want to do real Quick guys and we'll move on to the next Scene is let me pull up a Redfin chart So that I can show you overall Houston
And tell you guys how much the median Sales price has gone down already now as We can see here we peaked around May of This year and fast forward to today Here's where we're at you guys can tell We're about forty thousand dollars off The median sales price which rate which Represents as surprising as this is you Guys that represents an 11.3 percent Median sales price decline in Houston Already and look at how you know let me Pull up it again look at how close we Are in Houston to being on the Year-over-year price decline list so Things are changing rapidly here in Houston this is absolutely beautiful Again wait for additional price Cuts but Right now we have Hefty price Cuts great Buying incentives uh money towards Closing costs Offset you know over Exposing yourself as a buyer what a Change you guys what an apps absolute Change from this time last year so count Your blessings things are changing Rapidly right before our eyes so here's Going to be my final scene which is Behind me as you guys can see is the Clubhouse and then let me pan a little Bit that way that's where the pool is Going to be the clubhouse pool but I Really wanted to have this final scene Here just to remind you guys that if you Do invest in this community in the Beginning phases and stages of this
Community remember it's probably going To take 10 to 15 years for them to even Sell this community out so you know will This Clubhouse be done how long is it Going to take for this Clubhouse to be Done how long will it take for the Amenities to get done no one really Knows you guys but we do know that it Does appear that this entire you know Community at least in phase two and we Went to phase one as well Overexposed by DR Horton so let's talk about some Things about you know why you wouldn't Want to buy new construction right now Now the first reason is they have more Room to go down on their prices so the Number one thing they have more room to Come down in the prices now the other Thing is understand also that they are Not regulated like Realtors and like Loan officers so you're gonna want to Have representation because quite Frankly you don't want to learn the hard Way you guys and you guys see all of That look at all of that land they have To go How the heck are maybe it's going to Take 20 years who knows but it's Definitely going to take a long time for Them to not only finish this and this Goes way back you guys it's going to Take them a long time to finish this but It's also going to take a lot of money For them to finish this so again you
Guys few things let's continue to go Over so another thing is is the quality Of construction being that this is a Little bit lower price point and they're Just throwing houses up like crazy You're gonna want to get an inspection To make sure that you know you uncover Any potential you know imperfections in Construction or poor quality materials Being used so again you guys remember Definitely get a new home inspection and Have it a very detailed inspection so You know your investment was built well Now another disadvantage even though This is a lower price point it's going To still be hard to purchase new Construction and cash flow so if you're An investor or a first-time homebuyer on Your first time home buyer that wants to Make sure that in an emergency case You're going to cash flow you're Probably going to have to put a little Bit more down than usual again because It is new construction so that is a Disadvantage but some of the advantages Are it does come with a 10-year warranty One you're covering essentially Everything two years I believe for Appliances and then 10 years for the Foundation so it does come with that Warranty as well you guys you guys have A lot of options we're in a community Right now with 45 foot Lots 50 55 and 60 Foot Lots as well so again you guys I
Really hope you enjoyed this video I Believe you guys are going to start Seeing even more price Cuts in the Community like this as these homes Continue to sit it's going to put more Distress on DR Horton the more distress On Dr Hort and the more inventory that Dr Horton has the more we're going to Start seeing additional price cuts and Additional buying incentives in other Words you guys we're only in the second Ending the longer that we wait better Deal we'll have so again you guys don't Forget to like this video comment below Let me know if you enjoyed this video Let me know if it helps now other than That guys if you're out there investing In real estate you know I wish you luck And I hope you when And you got me down again
