What’s Happening in the South Katy Market?

What’s happening in the South Katy real estate market? I’ll go over all of the details today.

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Today I’m here with a snapshot of what’s going on in the South Katy area.

As of right now, there are 1,286 properties for sale and 342 of those are under contract. On a monthly basis, we’ve had anywhere from four to nine sellers for every buyer on the market; right now, we have four or five sellers for every buyer on the market.  

There is a decent number of buyers out there, but since there are so many sellers, home prices are being forced downward. Homes that are priced properly and marketed correctly should still sell between 14 and 21 days, though.

As for the rental market, there are 641 properties for lease; out of those, only 51 homes are currently under contract. We are approaching the point where there are 13 rental homes for every tenant in the market.

A lot of people are hoping to lease their properties right now so that they can wait and sell them when the market improves. Unfortunately, with these numbers, I think that lease prices will fall pretty dramatically. In fact, they may drop as much as 35% over the next year. Part of that is because of the 1,100 empty apartment units in the same area; new apartments are popping up all over the place.

The 77450 zip code is the healthiest market in Katy.

The good news is that interest rates are at historic lows, which is great for home buyers. We have never seen so many mortgage rates this low. As a result, a lot of people are moving out of apartments and buying homes, which further hurts the rental market. The people who came to the area during the petroleum bubble just aren’t there in big numbers anymore.

If you are in the 77450 zip code, that is a great area to be in. It’s just about built out, so there isn’t a lot of new construction in that area. The people in the petroleum industry who had bought property further out are now selling to move closer in; a lot of them are ending up in the 77450 zip code. In fact, this zip code has the healthiest market in Katy.

As many of you know, Westpark Tollway is still under construction, so the amount of traffic in Katy is crazy right now. That indicates that we still have a very robust economy here in Katy. There are also a lot of new companies like Dick’s Sporting Goods coming into the area, which shows that Katy is still growing.

If you have any further questions about what’s happening in our market, just give me a call or send me an email. I would be happy to help you!