Katy’s real estate market is booming, despite the current widespread economic downturn. Home price appreciation in Greater Houston has remained strong over the past five years, with a total average growth of 4.8% , Think Realty reveals. And, in January 2020, the median home value was $235,000, up 3.7% year-over-year. According to real estate professionals, Katy is experiencing a seller’s market created by fewer homes on the market combined with continued demand.
Trends in investment
When it comes to Texas land investment, there are a couple of strategies currently popular with investors. In particular, long-term holds last two or more years and involve purchasing properties ideal for development. Returns vary greatly depending on holding length — 2-10+ year holds can generate anywhere between 20% and 100%+ profit. Alternatively, short-term holds allow investors to purchase raw land and make improvements over a period of three months to two years. A net profit of 20-80% is typically made. Elsewhere in the commercial market, commercial and strip centers are flooding in at low prices and becoming a popular investment in Katy. This is largely due to businesses unable to pay their bills and moving premises, explains Brandon Snyder, marketing and client experience coordinator and licensed real estate agent at The Triverity Group of Keller Williams in Katy.
Low interest rates
Interest rates are the lowest they’ve been for at least 25 years, says Bill Lacy, senior mortgage originator at Independent Financial in downtown Katy. “With strong credit, they are at or under 3 percent on a 30-year fixed. There’s a lot of things that go into that. But it’s amazingly low,” Lacy said. “It’s a wonderful opportunity to be able to go in and purchase homes and take advantage of this incredibly low interest rate.” Lacy also noted that a number of Katy residents are taking advantage of these low rates to refinance their homes and, in turn, decrease their monthly payments.
The rise of virtual showings
In-person home showings are now increasingly a thing of the past in Katy. Real estate agents are conducting showings virtually with the use of photography, drones, and video production. With virtual open houses, potential buyers can receive personalized tours from the comfort of their current homes. Real estate agents can provide information and answer questions in real time. “We’ve worked with people that have bought without even walking in them,” said Snyder. He’s confident virtual showings are here to stay — just look at how Carvana has changed the car sales business.
Ultimately, Katy remains a popular place to live for its affordable living costs, low crime rate, excellent schools, and churches. Interested buyers are increasingly looking to real estate agents for their expert knowledge and advice. “That’s why I thought it was so critical the state of Texas in our area named us as essential because housing is essential in being able to value and evaluate this, arguably the largest purchasers investment in a family’s life,” commented Crispin Reyna, CEO and real estate agent with The Triverity Group.