KATY MAGAZINE NEWS
January 28, 2022
By Natalie Cook Clark
Despite so many industries suffering during the pandemic, the Katy housing market experienced a huge boom in 2021 and this year looks to be another record-breaking season. Katy housing experts talk the 2022 housing trends you need to know.
Photo credit: Next Listing
Local Experts Predict Another Hot Housing Year
We’re just in the first month of 2022 but already experts forecast another record-breaking real estate year in Katy, Texas. This should be no surprise as the Katy area continues to grow with exciting new business and housing developments.
“Real Estate is usually slower this time of year,” says Erica Stietenroth with All City Real Estate. “We didn’t see last year go crazy until the end of February.”
Katy continues to see very low inventory and builders can’t keep up with demand. A lot of market experts predict another strong year because of the low inventory and high demand.
“It is possible that the mortgage rates could go up this year, however it’s not expected to go to the levels seen in the 80’s,” says Kristin Meijer with Chasestone Realty.
According to Meijer, new builds remain hot but have suffered greatly due to supply chain issues. “It was very hard on the builders when their lumber package rose 40-50%,” says Meijer.
As supply chains subside, builders should be able to increase inventory.
“Overall this is still very much a good market favoring sellers,” says Kerri Schultz with Keller Williams Premier Realty. “Interest rates are rising and might slow some buyers.”
Schultz also states that the area rental market is up by 18%.
Multiple Offers Remain a Trend
Due to the low inventory, houses continue to get multiple offers.
“Agents are still getting 10-20 offers on new listing that are hot,” says Patti Lacy with Caldwell Banker Realty.
Last year, agents reported crazy bidding wars but there is good news on that front for buyers.
“I’m not seeing crazy bidding wars, but many homes are still seeing multiple offers,” says Stietenroth. “This, of course, varies by location, price and condition.”
“Thankfully appraisals are finally starting to catch up with the increased contract offers over list price,” says Lacy.
Some homes are selling in one day! This makes timing even more important.
Finding the Right Time
“My biggest concern right now is, if I list the home, where are the sellers moving to? I don’t ever want anyone to be homeless,” says Lacy.
Lacy suggests that if a seller wants to sell and buy in the summer that they start meeting with an agent by February or March to start the process. She suggests clients to hire her stager to give advice.
“Then depending on the market analysis and how fast similar homes in their neighborhood are selling, we look at the timing,” says Lacy.
Should You Update Your Home?
Low inventory and high demand give sellers better options when it comes to updating and renovating their homes.
“Some are renovating and updating their home before selling, but some also realize that with such a short supply of homes they’re really not having to do as much in regards to that in order to still do well in the market,” says Stietenroth.
According to Schultz, many investors are scooping up houses without any repairs for lower prices.
“The best way to get the most for your home is to have the home well maintained and updated,” says Meijer. “The market is happy to pay a premium price if the home is move in ready.”
Housing Boom Creating Economic Growth
Katy continues to experience an economic boom as businesses and new housing developments continue to grow and bring newcomers to the area.
The north side of I-10 continues to see a lot of housing growth in master-planned communities like Cane Island, Elyson, and the new Sunterra development.
Katy ISD will open its 44th elementary school, the Steve & Elaine Robertson Elementary, in Cane Island. Plans for a future high school and junior high are also well underway.
Katy ISD’s continued growth reflects the needs of the community as it grows and thrives. Major future economic development includes the Katy Boardwalk District, which will include luxury loft residences (already accepting residents,) a full-service conference ce23811 Northwood terracenter and 155,000 square feet of office, retail, dining, and entertainment space.
Tiger Woods is also building his first Texas location of Popstroke, a family-friendly golf and outdoor dining experience just by Cinemark on the Grand Parkway.
“These developments are probably happening because the housing market is so hot,” says Schultz.
While 2022 is still young, it is clear that many experts still predict business growth and newcomers to continue.