A Perfect Storm
A combination of factors has changed the real estate market throughout the entire Houston Metropolitan Area and with the Katy real estate and Cinco Ranch real estate markets area being among the most active markets in the entire area, the changes experienced in this segment have been especially profound. As with any commodity, the real estate market is subject to “the law of supply and demand”. When demand increases, the price of available inventory rises and sales velocity increases. Currently, in the Katy area, the volume of existing homes listed through the Multiple Listing Service is estimated to be 36% below customary levels. Sales of new homes has risen over 28% over normal sales levels; consequently, the inventory of completed homes available for move-in has decreased dramatically. New home prices are increasing substantially and builder’s incentives to buyers are being reduced. Demand is such that higher prices can be obtained and financial incentives to buyers are no longer necessary to attract purchasers. Mortgage rates remain at the lowest levels in over fifty years and job growth in the entire Houston Metropolitan Area.
Katy and Cinco Ranch Seller’s Market is Upon Us.
In May, the Chairman of the Houston association of Realtors was quoted as saying “A seller’s market may be just around the corner” and that statement has proven to be quite prophetic. the economy continued to flourish, job creation continued at a near record pace and inventories of available homes continued to decline. Area home prices are rising and average marketing times (days on the market) are declining. Competitively priced homes in desirable not only sell quickly, but often generate multiple offers and sell at full list price or even above list price. That portion of the Katy real estate market between I-10 on the north, the Westpark tollway on the south, Highway 6 on the east and Fulshear on the west remains one of the most active housing markets in the country. This specific Katy real estate market which contains such highly desired residential destinations as Cinco Ranch, Grand Lakes, Nottingham Country, Green Trails, Seven Meadows, Cross Creek Ranch, Firethorne and many other established neighborhoods and master planned communities is literally booming.
Area Among Most desired in the Nation
Forbes Magazine has named the Ft. Bend County area as having “the most affordable housing in the country” and the economist for Trulia, Jed Kolko, has named the Houston Metro area as the Number 1 housing market for 2013. This ranking is based upon strong job growth, low vacancy rates, and low foreclosure inventory.
The Houston Economy Continues to Thrive.
The economy of the Houston Metropolitan Area is now ranked by experts as being the best in the nation. Approximately 96,000 well paid new jobs were created in calendar year 2012 and continued job growth is expected in 2013. Mortgage interest rates are expected to remain low throughout the year and housing values in the area continue to make gains.