Katy Texas Market Report YTD 3/31/14 versus 3/31/13 - Prices are Up!
(Note: Above picture taken by and copyright by Bob Gilbert with all rights reserved).
Inventory levels in South Katy or MLS area 36 have been on the low side for over one year. Prices during 2014 have jumped up rather dramatically which is no surprise to me at all. Builders prices of new homes have risen due to inflation and high demand. Some of the neighborhoods are on the verge of being totally built out which means the builders are running out of lots to build on. I expect prices to remain high and only go higher during the rest of 2014 unless there is a major shift in interest rates upwards.
I have been telling folks for at least 5 years, eventually prices in South Katy would jump upwards at a high rate. Prices in South Katy for several years have risen but usually at slow even pace in the range of 2-6 % or so. Some neighborhoods actually had a downward movement of prices. Those days I think are gone. I have heard some buyers claim they have read on one of those numerous free websites how prices have decreased in South Katy. Really! Where is that data coming from? Sorry i forgot those sites are usually incorrect with their information. You get what you pay for it. If you are a buyer and you holding out to purchase waiting for a price drop don’t expect to be buying a home until you change your price expectation.
Here are the current numbers:
Median sales prices are $293,500 versus $ 240,000 during 2013 which equates to a $53,500 increase or 22.3 %. Average prices ( I prefer Median) are $319,350 in 2014 versus $272,075 during 2013. The increase is $47,275 or 17.4 %. These are very high levels of increase and as I said above I expect this to continue during 2014. These rates of change are huge in my mind.
The sold to list price discount is now 3% in 2014 versus 4% in 2013. Days on the market was 56 days in 2013 and in 2014 has fallen to 45 days. Mind you this situation exists across all of South Katy which encompasses a huge geographical area. Months of inventory available for sale as I indicated is now only 1.4 months in 2014 and was 1.7 month during 2013. Some neighborhoods show less than a one month supply of inventory!
Active listing are down 39 homes or 7.5 % and new listing are down by approximately 3 %. Remember as I said above inventory levels last year were already on the low side and inventory continues its downward path in 2014.
If you want to buy a home in South katy the time to take action is right now and stop procrastinating. It will only get worse. .
Katy Texas Market Report YTD 3/31/14 versus 3/31/13 - Prices are Up!
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