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Bob is always looking for news about Katy Texas and the surrounding areas. Please e-mail me at bobgilbert2003@msn.com with any news you may feel needs a forum!
Local Katy Texas Market Report for YTD October 31, 2011

Local Katy Texas Market Report for YTD October 31, 2011

The Houston Real Estate Market is a extremely large geographic area and very complex market with numerous sub markets all performing somewhat independently. Generalizations about market conditions for the Houston Metropolis make little sense and really have no meaning. Houston has 46 separate and distinct MLS areas. Katy Texas is just one part of these numerous sub-markets. I believe the Katy market is comprised of 3 unique market areas each having different characteristics. The first market area is the town of Katy itself (old Katy) which can be isolated for the most part from the other areas as homes in this area are subject to the rules of the City of Katy.  Second is MLS Area 36 which is probably almost all properties that are actually physically located in a Katy mailing address and covers a large geographical area South of I-10. MLS 36 is zoned for the Katy ISD system. Third area is also a huge geographical area North of I-10 being MLS Area 25. This area includes a large segment of Cypress Texas as part of this MLS area. As in prior months, my market report will only cover MLS Area 36 or South Katy where there are numerous neighborhoods and a huge number of homes. This is my personal main area of operation.

There is a new classification method of areas in Houston and now one can get data for MLS area 36 broken into two distinct sub areas. If time allows this month I will write a report for each of these sub-markets to see if the smaller market data lends itself to the same market comments and conclusions as the one big area report does.

Prudential Gary Greene Realtors (PGG) located in Houston has devised an index they refer to as the “Hotness Index”. I was formerly an agent with PGG in Katy Texas and I still refer on a regular basis to the PGG market data they provide to the public via their web site as it is excellent data and very well done. The “Hotness Index” is a means of measuring demand and really only means anything if it compared to other sub- markets in the Houston Metropolis. During October 2011, South Katy was fourth having risen from ninth last month while at the end of July it was Fourth and the end of June Katy was third.  South Katy came into the top five once again as for pretty much the last 4 – 5 years South Katy has normally been in the 1 thru 5 spots in the PGG Hotness ratio.  South Katy’s rating on this ratio indicates the area has excellent demand for both new and resale homes. As I thought last month, the September 2011 data was an anomaly.

For the month of October 2011 there were 125 pending sales, 206 actual sales and there were 944 active listings with an inventory of available homes of 3.9 months. The areas hotness ratio was 13.2 while the top spot had a ratio of 17.6 (North Houston).

These market numbers being reported are all year to date for 10 months of 2011 and are coming from data supplied by the Houston Association of Realtors. Unit sales are up by 9.03 % from last year or by 203 homes and Median prices have decreased slightly to $241,000 or 1.63 % decrease from last year. Average prices have still increased by 1.40 % to $272,874. This continues to be excellent news for the Real Estate Market in Katy as well as Houston. Prices have remained constant and continue to show small up wards trends or are stabilized. This pricing trend line has been like this for at least the 4-5 years and there is reason to believe it will continue during 2012.

The percentage of discount sellers are willing to take from list price has remained constant at 4 % during 2011 and 10 months data remained at that level. Months of available inventory has decreased to 4.2 from 4.4 last year at this time but most homes are not just languishing on the market without any activity for months on end. Pending sales have increased by approximately 12 % which I believe continues to be a pre-cursor for continuance of positive trends and hopefully through the remainder of 2011 and into winter months next year.

Recent clients I have assisted have all at one time or another asked questions about the statistics that I have shown and discussed above. My previous statement includes first time home buyers. The language home buyers use maybe a little different but the questions are about market data pretty much as I have shown.

The chart below shows the makeup of available homes in South Katy by price. 62.6 % of the available homes are priced under $300,000. There are several excellent homes available right now at fairly cheap prices.

 

HOMES AVAILABLE IN SOUTH KATY

     

18-Nov-11

     
           

DOLLAR

 

NUMBER

NUMBER

% OF

 

PRICE POINTS

 

OF HOMES

< 300,000

Total

 
           

<100,000

 

23

     

100,000-150,000

 

74

     

150,000 - 200,000

 

165

     

200,000 - 250,000

 

168

     

250,000 - 300,000

 

150

580

62.6%

 

300,000 - 350,000

 

81

 

8.7%

 

350,000 - 400,000

 

87

 

9.4%

 

> 400,000

 

178

 

19.2%

 
           

TOTAL

 

926

     
           

 

I had inquiry this past week from a potential client I have worked with for a fairly long time. They decided to rent a home at first after moving from the East Coast to the Katy area They want a large home with 5 or more bedrooms, 4 or more baths, 4,500 sq. ft. minimum with a big yard and they have a price budget which make this possible.  However, they continue to read the newspapers on the East Coast and think they will find a bargain short sale or foreclosure matching their criteria here in Katy as they want their children to attend KISD. Unfortunately, the odds of me finding one of these bargain priced large homes is maybe 1 out of a million (if I am lucky). If you are waiting for the deal of a lifetime you and your family will probably never find it at least here in Katy and all the excellent reasonably priced homes will eventually be sold. Timing is everything for most us during our lifetimes. Don't miss the current opportunity to buy a home.

 

Homes for sale in Katy are available and continue to be available at very good prices and situation poses itself to be an excellent opportunity for home buyers in Katy to buy a home. Homes for rent in Katy are extremely tight as that trend has continued all year with only maybe a little over one month’s supply of available homes. This situation has existed for almost all of year 2011. The homes for rental markets that are close by geographically to Katy being Sugar Land and Cypress are continuing to experience the same robust rental market conditions and it has lasted all year as well. I have had numerous potential clients tell me that will wait and rent a home in Katy or Sugar Land or Cypress. This is a difficult task to accomplish especially if you and your family are working with a limited budget. As soon as a good rental home hits the market at a decent rental price per month it is gone. The time to buy is right now while interest rates are low and there is a good supply of available homes. All of these tremendous opportunities will not be around forever. Katy has everything a family needs to live an excellent and comfortable life. Contact me to arrange a tour of the area.

New David Weekley Home Cinco Ranch West Katy Texas

If you have any questions about homes for sale or homes for rent

in the Katy, Sugar Land or surrounding areas or other questions

contact me at bobgilbert2003@msn.com or at bob@bobgilbert.com or visit us on the web at

http://www.katyhomefinder.com Katy TX Real Estate Expert

Read my blog at http://bobgilbertblog.com

TEAM DEVER...

Bob, Realtor, CPA AND MBA


Bob Gilbert

Published Tuesday, November 22, 2011 5:18 PM by Bob Gilbert

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