The pandemic buying brigade is fully active in Space City.
With half of 2020 already behind us, the coronavirus (COVID-19) outbreak continues to make its presence known. But even during the pandemic, the Houston real estate market is successfully attracting new buyers from other areas.
Most of these new homeowners are moving from states where affordable housing space is difficult to find. Whereas, others are simply looking for a change during the pandemic. But whatever the cause may be, it is firing up the Space City’s housing market left, right, and center.
Houston Recorded a Massive Increase in Yearly Sales
Almost immediately after the COVID-19 outbreak spread in the U.S., the Houston housing market noted a drop in sales. The trend was not different from other major cities in the country. However, it certainly made a dent in the frequency of real estate transactions in the city.
Despite local realtors’ efforts to keep their operations afloat, home sales went down in April and May. As the novel coronavirus continued to spread across Texas, it seemed that the downward trajectory would also continue. But a new found interest by many buyers breathed new life into the market.
Through this renewed interest, the Houston real estate market made a massive comeback. In June 2020, the market recorded successful sales of 9,328 single-family homes. This was a 15.7 percent increase from June 2019, where 8,063 single-family units were sold.
Cabin Fever Drove Up Pandemic Buying
Despite a steady rise in prices, Houston’s inventory started attracting buyers who were looking to spruce up their living. Larger square footage, changes in scenery, and modern renovations encouraged those with buying power. As a result, Houston and its surrounding areas such as Sugar Land saw a consistent spike in sales.
At the time of writing, this movement has continued its momentum. Much of it can be attributed to the cabin fever felt by people while being stuck at home. Staring at an outdated kitchen or lamenting the lack of a backyard can trigger the need for greener pastures. Under these circumstances, those who can’t renovate or expand their current limited space are deciding to move altogether. This has made way for so-called “pandemic buyers,” who also want to benefit from low mortgage rates while they can.
Comparatively Affordable Prices Are Yet Another Supporting Factor
Texas is known for its competitive real estate. Keeping in line with this tradition, Houston homes do not come cheap. They have seen a gradual yet definite rise to their costs year after year. But the city is still more affordable than other popular areas in the Lone Star State.
As compared to Austin or Dallas, the Houston housing market advertises lower prices while carrying prime inventory. The average home price in Houston is about 20 percent lower than Austin, and about 25 percent cheaper than Dallas.
This pocket-friendly pricing is one of the major reasons why Texans from other areas are buying homes in Houston. At the same time, it is also motivating out of state buyers to choose the Space City over other locations.
This makes one thing very clear. If you are looking to upgrade your living during COVID-19, Houston’s real estate market is yours to explore.
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