The most frequent questions I've received this year are from people wondering if COVID-19 has affected the value of their home. That is a legitimate concern as we've entered into a recession this year and every day looks more and more like the stock market is in its own bubble. Are all these factors affecting the value of your home? In regards to the Cypress Texas real estate market, that answer is both yes and no.
Between February and June in Cypress:
To see exactly how COVID-19 affected the Cypress real estate market, we reviewed data from home sales after the pandemic started to affect our daily lives. Looking at data from the past 10 years in Cypress between February and June we were able to get a picture of the effect of the virus by comparing data over the same period every year.
All of the data we reviewed and shown in this post was for single-family detached homes. We didn't look at commercial properties, condos, land, or any other sub-property type.
The good news is your home is probably worth more now than it was in 2019. But, as you can see from the chart above, the rate of growth in appreciation has slowed. Over this period median home values increased by 2% in 2020. In comparison, home values increased by 7% over 2018 in 2019.
Even with a decrease in the rate of appreciation in Cypress since the pandemic, we still believe home prices will trend upwards in the long term. Particularly in the Bridgeland and Towne Lake communities as these areas continue to be in high demand.
Despite the shut down in April, the number of home sales has remained steady. The number of home sales between February and June this year is only slightly lower than in past years.
The decrease appears to be directly associated with the shut down in April. There were 138 fewer home sales in May 2020 than there were in May 2019. With roughly 30-45 days to close it would appear that the decrease was due to the closed economy in April. However, in June, home sales rebounded with 55 more sales occurring than in June 2019.
In summary, COVID-19 hasn't had a huge effect on the Cypress real estate market at this point. Homes are still appreciating and there is still a demand for homes in the Cypress area.
A word of caution: we don't know what the future holds. There is the possibility after the current stimulus package passed by Congress expires a slew of foreclosures may occur. This will affect the overall real estate market. But with Congress working on a second stimulus package, it is difficult to predict the effect on the overall real estate market and Cypress in general.
Want to know what your home is worth? Contact us, we'd be happy to do a free comparative market analysis on your home.
If you're looking to move to Cypress Texas we would love to help you find your home. We believe Cypress is a great place to live and a great investment in the long term. Contact us and let us help you achieve your goals.