Houston's Southgate Neighborhood, comprised of Southgate and the subdivisions just
west of Southgate, is thought of by most buyers as a neighborhood of homes between
$500,000 and $750,000. The neighborhood has seen significant appreciation in the
past 5 years. In 2004 the Southgate neighborhood was considered as homes priced between $350,000 and $500,000.

During 2006 and 2007 lots in West University were scarce and very expensive. Builders
turned to Southgate and began to build homes priced over $1 million. The Southgate
neighborhood is not yet $1 million plus neighborhood. In its niche of $500,000 to
$750,000 sales in the Southgate neighborhood are doing relatively well. Outside that
price segment, it is a Buyers' market.

The pace of home sales has increased in the past six months but not as much as in
Southampton or West University (see previous posts). No homes priced over $750,000
have sold during that time.

In previous posts I have explained how the inventory level is calculated and how to
interpret it. Please read those previous posts for more information.

Shown below is a table showing inventory levels in the Southgate neighborhood by price
range using both the Standard Method and the Six Month Method. The Standard Method
uses sales for the past 12 months and the Six Month Method uses sales from the past six
months The Standard Method shows the $500,000 to $750,000 as stable with all other
price segments being in a Buyer's market.