Following a year of record-low inventories and home sales in the Greater Houston area, Cy-Fair real estate agents expect demand to continue in 2015. In December, home inventory levels across Houston reached an all-time low of 2.5 months, while the average home price hit a record high of more than $280,000.
The average home inventory level in the Cy-Fair area in January was 3.9 months—with the lowest levels in the 77065 ZIP code—compared with an average of 5.1 months in January 2014. Despite falling oil prices over the past six months, the Houston Association of Realtors expects about 91,000 home sales in 2015.
"I think we are still in a very good position in our economy because we are so diversified," said Nancy Furst, chairwoman of the Houston Association of Realtors. "I think people who are considering selling will get top dollar right now. Sellers are in a good market."
Market trends
A seller's market is defined as a scenario in which there is not enough home inventory to meet the needs of buyers. A normal amount of home inventory is about a six-month supply, Furst said.
"2014 was a record year, we think, because of the vitality of the local economy," she said. "We think sales are going to normalize [this year], but we're still going to have a good market."
According to HAR, one factor that contributed to the lower inventory numbers is the number of new jobs—more than 125,000—that were created in the Greater Houston area in 2014.
"A lot of it has to do with the significant uptick in people moving to the Houston area," said Bret Nordquist, Realtor with Register Real Estate Advisors in northwest Harris County. "There's jobs, there's plenty of opportunities, and prices are low. You've got a tremendous amount of people concerned about oil prices, but we've got the Texas Medical Center and the Port of Houston here. There's a ton of opportunities people aren't focusing on because of the oil dip."
Lower inventory in Cypress specifically could be attributed to less construction activity in some of the area's master-planned communities.
"Bridgeland wasn't building in the last year and a half, and Fairfield is closing out, so in terms of new home builds, I think that had an impact in the last year or two," said Jim Mulholland, broker and owner of Cy-Fair Real Estate. "I do think Cypress is a desirable area to be right now."
"I do think Cypress is a desirable area to be right now."
-Jim Mulholland, realtor
Due to the high demand for houses, some sellers in the area have had to find a new place to live quicker than they thought, or have agreed to a leaseback with the buyer.
"I just had a home sell in Bridgeland in the first week it was on the market, and now the seller isn't sure where she's going to go," Mulholland said. "That's something we've had to be up-front about with someone who is selling their home."
Nordquist said it is an excellent opportunity for sellers right now, since the market price of homes is dictated by availability.
"If you're thinking about selling, now is the time to assess what your goal is and start working with a real estate agent," he said. "Properties inside Loop 610 are here today and gone tomorrow, and that same mentality is extending out to the northwest."
Many times if a home is priced appropriately, it gets snapped up quickly, Nordquist said, sometimes with multiple offers on a property.
"Instead of the days of looking at the price and seeing what you can offer and coming in under to work on a counter offer, buyers are coming in at list price to avoid getting into a bidding war," he said.
Growth in Cypress
Homes in Cy-Fair stayed on the market an average of 49 days in January, according to data from HAR. Local real estate agents cite CFISD, master-planned communities and the forthcoming Grand Parkway expansion as factors driving buyers to the area.
Additionally, the average home price in Cy-Fair was around $210,000 in January, which is lower than the Greater Houston area average of around $280,000.
"Cy-Fair has been a very appealing sector of Houston, and as a result our prices are much more competitive compared to Katy and The Woodlands, where the same type of house goes for $50,000 or $100,000 higher than here in Cypress," said Rich Guderyon, branch manager for Better Homes and Gardens Real Estate Gary Greene in Cypress.
The extension of the Grand Parkway from Hwy. 290 to Hwy. 59—set to open late this year—is also expected to drive demand.
"I am a Cypress resident, and I've been looking forward to it since they started talking about it," Nordquist said. "There will be a tremendous amount of growth that comes with that. Once you've got the ability to get in and out quickly, all the world follows. Right now, getting to The Woodlands is pretty difficult, but having a pipeline that goes straight there and to the ExxonMobil campus will be very welcome."
Mulholland said he expects Cypress to be in a better position than the Greater Houston area and does not see any signs the real estate market is slowing down yet.
"You can't beat Cypress," Guderyon said. "There's industry coming out this way, infrastructure is getting better and the schools are great. You don't get swallowed up in that big city feel, and it lends itself to a lot of different personalities and lifestyles."
