The real estate market in Houston changes as fast as the weather! In the last two weeks, the
pent-up demand for homes has exploded and buyers are faced with competing with multiple offers and
paying above the list price in order to win in bidding wars.

The Katy inventory levels have dropped to a 1 month’s supply, while the Energy Corridor is
hovering around a 2 month’s supply, so buyers are now circling and waiting for homes to come on the
market then pouncing on the first decent opportunity.

I was with a buyer this weekend that is relocating from Austin and after viewing 7 homes in
Katy, we made an offer on a home that was on the market for one day and already had 7 offers.
Surprisingly, this home was priced at the top of the market, but it had an amazing backyard with a pool,
outdoor kitchen, and an outdoor fireplace. The interior was also remodeled with on-trend finished and
the home was decorated like a magazine. I knew that offers would go above the list price, but I did not
predict that buyers would be willing to offer 7% above the list price in this market. This would not have
happened 30 days ago!

It is important that Realtors advise their clients to approach the bidding wars with financial
awareness and to not get caught up in the emotion of winning at all costs, but what happens when
other buyers continue to outbid your buyers and offer a full appraisal waiver? Be prepared to see home
prices increase again this summer if we continue down this path. Of the 7 homes we scheduled visits for,
4 of those homes had multiple offers within 24 hours on the market, and they were not all move-in
ready.

While the housing market seems to be ramping up again in Houston, I cannot confirm that every
market is experiencing the same buyer’s frenzy that we are seeing in Katy, but we are seeing signs of this
demand increasing in the Energy Corridor and Memorial markets as well, despite double the inventory
levels.

What happened to the economic forecasts that this would be a slow year for real estate? I don’t
know what is happening in the rest of the United States, but at this rate, we will have a hot summer for
home sales in Houston! If you are looking to rent a home, be ready to find those home quickly as well.
Whether selling or leasing homes, our inventory at Energy Realty is flying off the shelves!