The month of March was mixed for single-family rents in Katy. Volume for closed single-family leases north of I-10 increased about 21 percent year-over-year, while volume in South Katy fell about 13 percent compared to last year. Overall it was a decent month for Katy area rentals in terms of demand.
Prices for single-family rentals in Katy continue to be pressured with the saturation of the multi-family space. Average rents in Cinco Ranch, after starting the year off noticeably weak did see a bump, but the trend of lower year-over-year single-family rents is still intact for the time being. It will be interesting to see if the summer selling season leads to higher prices and/or better demand.
With those softer average rents, days on market are also climbing higher. It took over two months to move the average single-family rental in South Katy in March. Days on market also climbed north of I-10, jumping from 40 days last year to 50 days this March.
The March home sales report is going to show solid demand for both Katy and Houston area homes, with sales volume climbing in both areas. So far at least, higher mortgage rates have had little affect on demand for single-family home purchases. Mortgage interest rates have cooled of late, so the rate scare we had at the end of 2016 may have been a short-lived event.
I received a notice yesterday of rates on a 30-year fixed at 3.875 percent. With the Treasury markets calling the Fed’s bluff, it is still possible to get a 30-year fixed-rate mortgage below 4 percent if you have good credit.