Cy-Fair Edition | July 2022

CONTINUED FROM 1

Data from the Houston Association of Realtors shows 30% of Cypress households are earning the minimum qualifying income to aord a median-priced home. AN AFFORDABILITY CRISIS

shifting, but it will not be shifting anytime soon,” Hall said. “What we’re seeing is an evolution of the mar- ket because the interest rates have gone up a couple of points since the beginning of the year, so instead of seeing, let’s say, 40 oers on a house, you may see 20. Or you may see some houses sitting a little bit longer—like seven days instead of three.” Local income trends lag behind the rise in home prices, causing aord- ability concerns, real estate experts said. Some 41% of Harris County households are earning the mini- mum qualifying income to aord a median-priced home, according to the Houston Association of Realtors’ Housing Aordability Index. That number drops to 30% in Cypress and 33% in Jersey Village. Lawrence Dean, senior vice presi- dent of advisory for Texas at housing market research rm Zonda, said his- torically Houston has been known as one of the more aordable metropoli- tan areas in the U.S. because the mar- ket can typically supply more housing as needed. In Houston, there are min- imal regulatory barriers and natural barriers that inhibit growth in other parts of the country, he said. As low inventory drove elevated prices in the resale housing market during the pandemic, homebuilders ramped up production, experts said. Nearly 21,000 homes are under construction in the Houston region— the most Zonda has ever observed in its quarterly counts, Dean said. According to a report demographers at Population and Survey Analysts released in May, about 11,750 sin- gle-family homes and 8,800 mul- tifamily units are planned for the Cy-Fair region in the next ve years. But new construction homes have

AFFORDABILITY IS DEFINITELY BECOMING A PROBLEM, BUT THEN WE’VE GOT THIS INFLUX OF PEOPLE COMING IN FROM OUT OF TOWN, … AND OUR PRICES LOOK GREAT TO THEM. TARA HALL, REALTOR

Aordability rate by region

Harris County Houston Cypress

THE HOUSING AFFORDABILITY INDEX shows the percentage of households who earn the minimum qualifying income to aord a median-priced home. Income requirements for median-priced homes increased 25.9% year over year in Cypress.

Low interest rates and a drop in the median home price led to a spike in aordability in Q1 2020.

75%

50%

41% of Harris County households can aord a median-priced home

25%

“The cost of building materials, the cost of labor and the cost of land—it takes all of those things in order to build a new home—the cost on all those items shot up exponentially during the pandemic,” Dean said. “Some of it was the supply chain; some of it was labor-related availabil- ity [or] a mix of both.” Inventory issues As of April, the Coppereld sub- market had 0.4 months of inventory available—down from 1.8 months in April 2019, according to the TRERC. This metric indicates the estimated amount of time it would take before the supply of homes is depleted. Sim- ilarly, northern Cypress had about 0.5 months available as of April. In the southwest portion of Cypress, inventory was higher at 1.3 months this April compared to 3.1 months two years earlier, the center reported. Hall said the market will become more balanced when homes are on the market for three to six months. A buyer’s market takes place when homes are listed for about six months or longer. According to the TRERC, this has not happened in Cy-Fair

SOURCE: HOUSTON ASSOCIATION OF REALTORSCOMMUNITY IMPACT NEWSPAPER

INCREASING INTEREST RATES With mortgage rates on the rise, real estate experts said they expect housing demand to steadily decline in the coming months.

U.S. xed mortgage rates

30-year xed-rate mortgage

15-year xed-rate mortgage

5.27%

4.51%

3.95%

4.52%

3.72%

2.65%

3.22%

3.99%

3.38%

3.16%

2.16%

2.43%

JAN. 2020 JAN. 2021

JAN. 2022

JAN. 2018

JAN. 2019

SOURCE: FREDDIE MACCOMMUNITY IMPACT NEWSPAPER

also become more expensive. In ZIP code 77433, where most of Cy-Fair’s new home construction is taking place, the average home sales price rose from $374,800 in June 2020 to

May 2021 to $445,559 in June 2021 to May 2022, according to data provided by The Baker Foreman Team at Better Homes and Gardens Real Estate Gary Greene in Cypress.

25,000 square foot resort club. Live somewhere new and enjoy a lavish active adult lifestyle with extraordinary experiences.

Scan for amenities!

• BILLIARD & POKER LOUNGES • OUTDOOR KITCHEN & GRILLS • INTERACTIVE GAMING GREEN

• POOL WITH SWIM UP BAR • FULL-SERVICE SALON & SPA • FITNESS & YOGA STUDIO

ONE BEDROOMS STARTING AT $1400

(832) 952-3012 12840 Jones Rd. Houston, TX 77070•ArellaJones.com

COMMUNITY IMPACT NEWSPAPER • COMMUNITYIMPACT.COM