South Katy, Area 36 - Defined as Katy market south of Interstate 10

The Katy/Cinco Ranch Area was Number 2 on the Houston Hotness Index for June 2008 because 16.9% of all active listings went under contract during that one month.

The area has experienced 1,326 homes sales YTD or a 6.75% decline over June YTD 2007.

There has been a 3.94% increase in average sales price, which currently stands at $250,461.  The median sales price where half the homes sold above and half sold below is $215,000 and that is 4.88% greater than this time last year.

The Katy / Cinco Ranch area has experienced a 10.83% decline in pending sales for a total of 980 YTD. 

There has been an increase in homes on the market as the area experienced 32.39% more listings. There are currently 1,026 homes on the market and last year there were 775.

The market has 4.7 months supply of inventory, which indicates an appreciating market and although supply of inventory has increased, the buyer demand has absorbed enough inventory to keep the market as a sellers’ advantage.

Far West – Katy - 25 (Areas north of Interstate 10)

Single family home sales in the Houston Far West area are down by 18.01% in comparison to June YTD 2007, with 1,329 recorded home sales YTD.

Contracts initiated June YTD 2008 are also down by 11.97%, or 1,169 total units.

Listings are down by 28 units in comparison to last year or 1.77% with 1,550 listings currently on the market in comparison to 1,578 last year.

Average sales price for the Far West area is down by .66% over June YTD 2007 and is currently $136,391.  The median sales price [where half the homes sold above and half the homes sold below] was $122,900, a 3.61% decline over last year.

The Far West area currently has 6.4 Months of Inventory, meaning if no other listings were taken, and current buyer demand stayed at current levels, it would take 6.4 months to deplete the current supply of homes.

According to the Houston Hotness Index for June, Far West had 11.7% of all inventory go under contract during the month, earning a ranking of #13 out of 45 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 substantially due to a flood of inventory, from 2007 to the present – from 73 days to 88 days.

Houston Market Real Estate Report including surrounding areas:

June YTD 2008 – Single-family home sales

Anyone sitting on the real estate sidelines from a media-induced coma needs to wake up and smell the future in Houston, Texas.  Yes, the Houston residential real estate market is experiencing a temporary lull as shown by the statistics below, but it is not from a lack of a robust job market and economy. Houston is the fourth largest city in the United States, located in a culturally diverse metropolitan region, which is home to 5.6 million residents.  The city is growing at twice the national pace.  It has one of the lowest costs of living, an educated workforce and is home to 88 consulates, which is a testament to its international influence.

For a concise picture of the Houston real estate market, go to www.houston.org/rankings and you will find 26 national publication rankings of first place in job growth, business climate, health care and lower cost of  living.  The factors ranked are key drivers of any real estate market, and one of the reasons that despite a temporary slow down, Houston still boasts a positive median and average sales price. It also indicates that today is probably the best time to invest in real estate in Houston.

I predict that this year may end up the same or slightly above the third greatest year in residential history, based on the similar number of sales found June YTD 2008 as those found in June YTD 2005 and a 4.166% higher number of units pending this year than those found in 2005.  We are currently experiencing a more positive real estate market than 2005 in terms of higher dollar volume sold, higher average sales price, median sales price and pending contracts. 

Jobs, interest rates and favorable home prices drive real estate, so we have an economy poised to not only absorb the additional inventory, but to move beyond previous growth cycles and set new records. 

Buying property is a complex and stressful task. In fact, it’s often the biggest single investment you will make in your lifetime. At the same time, real estate transactions have become increasingly complicated.

New technology, laws, procedures and the increasing sophistication of buyers and sellers require real estate practitioners to perform at an ever-increasing level of professionalism.

So it’s more important than ever that you work with an agent who has a keen understanding of the real estate business. The GRI* program has helped the best and the brightest in the industry achieve that level of understanding.

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Texas nonfarm employment rose 2.6 percent from April 2007 to April 2008 compared with a much lower 0.3 percent annual growth rate in nonfarm employment for the United States as a whole.

The state’s seasonally adjusted unemployment rate fell from 4.4 percent in April 2007 to 4.1 percent in April 2008.

The state’s mining industry, benefitting from higher oil prices, ranked first in job creation, followed by the professional and business services industry, the leisure and hospitality industry, construction and the education and health services industry.

All Texas metro areas had positive employment growth rates from April 2007 to April 2008. Odessa ranked first in job creation followed by Laredo, College Station–Bryan and Houston–Sugar Land–Baytown. Midland had the lowest unemployment rate followed by Amarillo, Odessa, Lubbock and College Station–Bryan.

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.”