Halfway through 2016, the real estate market in Cy-Fair continues to remain stable despite the ongoing oil and gas downturn. The average time a home spends on the market has risen, but experts consider the trend a sign of the more sustainable market pace.
Meanwhile, the average price of homes sold continues to rise, according to data from Houston Area Realtors. The median price of homes sold in June reached a new high in the Greater Houston area, while the average price of homes sold reached its second highest level ever. Home prices in Cy-Fair are up as well, according to local real estate agents.
“Prices are up about 5.5 percent for sales, which is pretty amazing considering the economy,” Jim Mulholland, Cy-Fair Real Estate founder said. “The thing that is down is days on the market, but even that is still really good.”
At this time last year, a home would take an average of 18 days to sell. This year, that time frame has been bumped up to a full month, Mulholland said.
Real estate agent Simon Davidson said the pace the housing market has been operating at the last few years has been unhealthily strong, and the new selling speed is more sustainable over time. Home sales in the Cy-Fair market are still up 7.6 percent year over year.
“It’s no longer at a breakneck speed, but it is a good pace,” he said.
Cy-Fair is still considered a seller’s market with an inventory rate of 3.7, meaning it would take 3.7 months for all homes currently on the market to sell, Davidson said. The June 2016 inventory rate is up from last year at this time, when it clocked in at 3.2, he said.
Anything above a six-month inventory is considered a buyer’s market, he said.
He said the market is substantially different depending on whether houses are being sold above or below $300,000.
“It is a tale of two housing markets,” he said. “[Homes priced] under $300,000 are still very good. Above $300,000, especially in the half-million range, is more of a buyer’s market. The meat and potatoes … will always be between $150,000 and $300,000. ”
Part of the slowdown is due to the slump in oil and gas prices, but it has been mitigated by Cy-Fair’s diversification, Davidson said. He stressed that even though there was a loss in oil industry jobs, there was a net gain overall.
New development helps the market, Mulholland said.
With 51 home sales in the month of April, the master-planned community Bridgeland recorded its third best month in the company’s decade-long history.
These sales, coupled with the increased commercial and real estate development in master-planned communities throughout the region, are drawing more residents to Cy-Fair, Mulholland said. Shopping opportunities and community centers are a major lure for new residents, he said.
“It is exactly the kind of thing Cy-Fair has been lacking,” Mulholland said.