Has Katy Texas Home Inventory Bottomed?
Has home inventory in Katy Texas reached a bottom? With the extremely tight inventories we saw heading into summer, the data suggest that we may indeed have reached the tipping point for imbalances in supply in demand. Home inventories in the Katy area were running at historic lows, but the recent spike in mortgage rates combined with some new listings hitting the market have caused inventory to creep higher in some of Katy’s popular communities. Days on market has seen a huge drop this year with the red-hot real estate market while prices have seen a sharp increase. Alas, we may have had too much of a good thing during the first six months of the year. Will we be able to continue the momentum in the Katy housing market during the 2nd half of the year? I wouldn’t get my hopes up. All the indicators and long-term averages suggest things will cool off in Q3 and Q4.
Calculated Risk notes that U.S. home inventory is up 16.7% in 2013 while being down 11.9% from the same time a year ago. HAR data show that inventory of single family homes currently stands at roughly 3.5 months supply. Inventories in Katy Texas are standing at only 2 months supply for north Katy and 1.8 months supply for south Katy. In just the last few weeks I’ve seen inventories pick up a bit. This would suggest that while U.S. home inventory bottomed earlier in the year, we have now bottomed out in terms of inventory here in the Katy area. That has implications for both buyers and sellers. If you are one of those sellers who needs to move and you’ve been fishing for an inflated price, your time and leverage may be running out!
Houston area home inventory appears to have reached a bottom
U.S. home inventories likely bottomed early in 2013
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