Considering a move to Katy? Thinking about upgrading to a larger home or perhaps downsizing? The Katy housing market is hotter than ever. According to Redfin, this area is very competitive, with many sellers receiving multiple offers for their homes.
Real estate in Katy: Current listings
Thanks to its position within the Houston – The Woodlands – Sugar Land metropolitan area, Katy offers a combination of convenience, quality schools, and close proximity to many major employers. Most of Katy’s housing is relatively new, with most growth happening well after the year 2000. Adding to its family-friendly nature, most real estate in Katy consists of single-family homes. A small percentage (just about 15 percent) of these are available to renters, while the majority (85 percent) are occupied by homeowners.
Smaller properties are occasionally available but most of the houses in Katy have three to four bedrooms. Many of the homes that are currently available have five or more bedrooms.
A quick survey of available property for sale in Katy reveals that home prices are highly competitive, starting from about $100,000. Of course, buyers have access to stunning homes in the one- to two million dollar range.
Various types of property are available: Occasionally, a larger lot, suitable for equestrian, farm, or agricultural use will become available. Many properties – including moderately priced ones – are well-equipped, with appealing amenities including pools, backyard firepits, mature trees, and much more.
More Texans are moving to Katy
It’s fairly simple, really. Texas cities saw a slump in real estate sales during the first quarter of 2020 but the housing market began to heat up over the summer months and doesn’t show signs of cooling down during the second half of the year.
In case you’re interested in the driving factors behind Katy’s recent real estate boom, here are some figures:
- Houston homebuyers have fewer homes to choose from. It’s a seller’s market in Space City, with intense bidding wars between qualified buyers who are desperate to grab some of the most attractive mortgage rates ever offered. According to the Houston Association of Realtors, new property listings in Houston have dropped by 11.4 percent since this time last year, while successful closings have increased by 15.9 percent. During the week of August 10th through August 17th alone, buyers closed on an impressive 2,138 homes.
- Many of these Houston homes were more upscale. With stay-at-home orders in place, more affluent Houstonians decided to upgrade to spacious homes with better amenities.
- Central Austin saw a similar leap in real estate sales. In July, Central Austin home sales were up by 14 percent when compared with sales from July of 2019.
- Central Austin’s realtors are recording higher average home prices, too: In July 2020, the average Austin home sale was over $707,000, representing a 16.1 percent increase from July 2019 prices. Overall, central Austin has seen a 32.3 percent increase in the dollar volume of real estate sales.
- The Austin Metropolitan area as a whole has seen even more impressive gains. To date, there has been a 21.5 percent year over year increase in home sales throughout the region.
- Austin’s housing inventory is remarkably low due to high demand. The Austin Board of Realtors notes that there is a 32.4 percent decrease in active listings.
Katy housing market: Attractive housing prices & desirable neighborhoods
In Katy, homes rarely stay on the market long and sellers are getting excellent offers. Hot homes sell right around their list prices and often go pending in an average of just six days after being listed. The average home in Katy sells for a mere one percent or so beneath list price, and goes pending in just about 23 days. Home prices are fairly low when compared with those in Austin:
- A 2,022 square-foot 3 bedroom, 2 bath on Windy Brook Ln fetched approximately $199,500
- A 4,082 square-foot 5 bedroom, 3.5 bath on Tydeman Court sold for approximately $415,000
- A 2,357 square-foot 4 bedroom, 3 bath on Coyote Drive sold for approximately $374,900
- A 4,125 square-foot 5 bedroom, 5.5 bath on Gable Landing Ln sold for approximately $585,000
No end to low housing inventory in sight
Katy’s housing market isn’t likely to change soon, so long as major Texas cities including Houston, Austin, and Dallas-Fort Worth continue to see low housing inventory amid increased demand. Texas A&M Real Estate Center mentions that Texas’ housing market is – and will, more than likely, continue to be – a driving force in the state’s economic recovery. Furthermore, the center estimates that several factors will contribute to a continuation of current trends:
- Current foreclosure moratoriums
- Historically low interest rates
- A decrease in the median loan-to-value ratio and debt-to-income ratio
- An increase in median credit scores
- Sustained demand for higher-priced homes
Lower tax rates may bring increased interest in Katy real estate
Katy’s attractive location, appealing real estate prices, and availability are certainly driving factors in the city’s current real estate boom.
On September 8, 2020, the Katy City Council voted for a lower tax rate of $.44 per $100 valuation, representing a four cent drop – and a seven percent drop from the current rate of $.48 per $100 valuation. You can read more about that here.
With new homes being built in Katy and major employers including Amazon entering the region, the housing market forecast looks bright for sellers and buyers alike.