Fed Cuts Interest Rates Again

WASHINGTON (Associated Press) – The Federal Reserve cut its key interest rate by one-quarter percentage point to 2 percent Wednesday, bringing the rate to its lowest point in nearly four years.

In turn, the prime lending rate for millions of consumers and businesses fell by a corresponding amount, to 5 percent.

Following the Fed action, Wall Street investors drove the Dow Jones industrial average up more than 178 points, lifting it above 13,000 for the first time since early January. By the end of the day, though, the index was 11.81 points below where it started.

The Fed, which has been dropping rates since last fall, has not removed another reduction from the table. However, a growing number of economists believe the central bank is winding down its rate-cutting campaign.

“The Fed didn’t completely shut the door on rate cuts, but they closed it part way,” said Mark Zandi, chief economist at Moody’s Economy.com. “I think the overall message was they’ve done a lot already to help the economy and think this will be enough. But they stand ready to do more if that is needed.”

Katy Real Estate Market Information - April 2008

KatySouth - Katy Area 36

•       The Katy/Cinco Ranch Area was Number 6 on the Houston Hotness Index for March 2008.  13.9% of all active listings went under contract during the month.

•       The area has experienced 503 homes sales year-to date (YTD) or a 1.3.28% decline over First Quarter 2007. 

•       There has been a 13.49% decline in average sales price, which currently stands at $240,793.  The median has gone up 3.38% since the First Quarter of last year and is currently $205,990.

•       The Katy / Cinco Ranch area has experienced a 13.49% decline in pending sales for a total of 417 YTD.

•       There is no shortage of homes on the market as the area experienced a 33.99% increase in homes on the market. There are currently 954 homes on the market.

•       The market has 4.4 months supply of inventory, which still indicates an appreciating market, but not as strong as the 3.1 months of inventory experienced last year.

 

North – Katy Area 25

 

• Single family home sales in the Far Westarea are down by 11.45% over March YTD 2007, with 603 recorded home sales YTD.
• Contracts initiated YTD 2007 is also down by 4.25%, or 586 total units.
• Listings are also up by 9.31% with 1,526 listings currently on the market in comparison to 1,396 last year.
• Average sales price for the Far Westarea is down by 2.08% over March YTD 2007 and is currently $137,109.  The median sales price [where half the homes sold above and half the homes sold below] was $124,950, a 3.51% increase over last year.
• The Far West area currently has 5.7 Months of Inventory, meaning if no other listings were taken, it would take 5.7 months to deplete the current supply of homes.
• According to the MLS Houston Hotness Index for March, Far West had 14.2% of all inventory go under contract during the month, earning a ranking of #4 out of 44 on the Hotness Index… 
• The list price/sales price ratio of homes in the area is 97% [meaning a seller could expect a reasonably priced home to sell for 97% of the list price].  Average price per square foot in the area is $63.  Days on the market have increased from 2007 to the present – from 93 days to 74 days.

 The two Katy areas are divided North of Interstate 10 and South of Interstate 10. AS two very distinct real estate markets, please call or email me if you would like to learn more about your individual neighborhood and home.