As I type this update, there are only 89 homes actively for sale in Katy! That is an insane low inventory, and we are experiencing similar low inventory and pent-up demand in the Energy Corridor as well.
This market is fully in favor of the Seller, and buyers are forced to overpay for homes as well as offer appraisal waivers, giving up any rights to renegotiate if the house does not appraise for their offer price. Crazy!
The last time I saw the housing market this crazy was before the oil price crash of 2014. My advice is Buyers Beware! A home purchase should be a long-term investment, not just a place to live. If you are forced to overpay for a house in this market, it could be another 5-7 years before you gain value back if prices stabilize any time soon.
We call this a speculative market, which is not typical for Texas. A speculative market is more typical for California or Florida, where buyers are willing to pay above the market, based on speculations that the market price will only go up. The truth is that none of us know for sure where the market will go, so it is a gamble.
For now, I am advising buyers to be cautious and wait for more inventory. Like any market, it is about supply and demand, and the demand is far greater than the supply right now. Most sellers wait to put their house on the market in the Spring or early Summer because they think that is the best time to sell. As a result, we should see a lot more homes come on the market by March and it won’t be such slim pickings for the buyers. If you are thinking about selling your home, I advise that you list your house now before inventory levels rise. Strike while the iron is hot!
By Sherry Campbell