Going modern
A custom homebuilder says an outdoors feel indoors is one of the trends he sees.
John Leggett, CEO of On Point Custom Homes, was at the forefront of the modern home movement in Houston when he started his company in 2005.
The firm builds between 14 and 18 custom homes a year and handles six to eight remodeling projects. The houses start at about $600,000 and go up to $5 million for one being built in the Memorial area on behalf of an investment group.
Leggett is being honored as one of three winners of the Texas Association of Builders’ Excellence Under 45 Award, which recognizes up-and-coming young builders and their contributions to the industry.
He spoke with the Chronicle recently about the business of building. Edited excerpts follow.
Q: In this market, is a $5 million spec home risky?
A: There’s not a lot of inventory at $5 million. By the time you say, “I’m ready to go,” it might take three years until it’s ready to move in. A lot of people want it, and they want it now. If you surveyed Memorial, anything $1 million and up, I’ve got a sneaky suspicion not much of it’s modern.
Q: What are the top three things people want in a house?
A: Converging the indoors and outdoors, blending the living room where it feels as if it moves within an outdoor veranda space. Sliding glass doors are popular.
Technology is on the forefront. Everything that is mechanical can be controlled by an app these days.
Lifestyle spaces. Pet rooms, dedicated gyms or saunas, wine rooms. It’s all based on how that owner lives.
Q: How are builders adjusting to the oversupply of homes for sale at the upper end?
A: We track micro markets across Houston. We’re looking to see if the inventory on new construction is increasing, decreasing or staying stable. You’re finding pockets that are much more saturated than others. A lot of the Heights has become very saturated with new construction inventory. Tanglewood has a lot on the market at the upper end, but a lot of buyers don’t want to buy resale. They only want new construction.
Q: Have you seen a slowdown in sales?
A: Things aren’t flying off the market like they were a few years ago. It’s a much more efficient market between buyers and sellers now. Certain areas are 100 percent slowing down. Certain areas are showing no sign of it.
Q: What’s happening with lot prices?
A: They’ve fallen off 5 percent to 10 percent from the peak price in the third quarter.
Q: How much do lots cost?
A: It varies by market. $40 a foot to $120 a foot. Your highest-priced real estate, on a persquare-foot basis, West University is going to be really high.