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Low Inventory Drives Buyer Demand and Multiple Offers


Low Inventory Drives Buyer Demand and Multiple Offers

Great news for the Energy Corridor! The former Exxon campus that has been vacant since 2015
will be the new home of Fugro, a Dutch Geo Data Company that is relocating their headquarters from
Sharpstown to the Energy Corridor. This will create some energy in our local housing market and stretch
to Katy and Memorial.

I keep waiting for the “seller’s market” to turn to a “buyer’s market”, but we are still seeing
multiple offers on homes in Katy and the Energy Corridor due to the low inventory levels that don’t
seem to be getting any better in the summer months. Let’s face it, we should see more homes coming
on the market, but they are being swooped up as soon as they come on the market. In case you missed
my Instagram video last week, buyers are giving up all their rights in contracts and offering above list
price on homes because they are tired of waiting.

As of today, we are looking at 1.1 months’ supply of homes in Katy, Texas with an average sales
price of $671k; 1.7 months’ supply in the Energy Corridor with an average sales price of $741k; and a 3
months supply if inventory in Memorial with an average sales price of $2.5 million.

These numbers are 50% of what we consider a normal supply, and the only reason Memorial
has more inventory is because the higher price range is selling at a slower pace due to the higher
interest rates.

Where are the buyers coming from? As one of the leading real estate offices that specialized in
Relocation, we are seeing a lot of relocation from other countries and states due to Houston’s strong
economy and employment. In addition, we are still seeing a migration from other states like California as
inflation drives families to reconsider the lower cost of living in Texas compared to other states.

Houston has always been the oil capital of the United States, but as companies have downsized
space since COVID, the cost of corporate taxes and rent have caused a lot of other companies to move
the headquarters to Houston. While other states may be experiencing a drop in prices, the Houston real
estate market is still thriving so the slow down in sales is only a direct result of low inventory.