2017 Katy TX real estate market outlook editorial
What are our expectations for 2017? Most of us in the industry are optimistic for 2017. Things always fluctuate with an election year and bring on uncertainty, but the stock market is doing considerably well and there is optimism that business will do better in the new Presidency.
Interest rates for buyers have gone up, which affects their buying power, but they’re still relatively low. Prior to the election interest rates were the 2nd lowest they’ve been since before 2011 and homes sales in 2016 benefited from this, most of us know the turn is coming. My broker has been preparing us for a shifting market for months now…heck, we’ve been in it…they’re preparing us for the downturn. Just as you see in the price trend for POV in the picture to this original post, home sales have been increasing which usually indicates a change to some decreases. We may not fully see it in 2017, but we’re due for a recession and good real estate agents and brokers have been preparing for this.
The Houston area, despite the oil and gas layoffs, etc. has still faired well…but the housing industry will start to turn more. Some subdivisions and price ranges around Katy and the Greater Houston area have already seen this…subdivisions as large as Firethorne and as small as Amesbury Park have seen an increase in homes on the market – which has resulted in higher days on market and lower sales prices. In Firethorne, new construction has played into this…and each subdivision has their influencers. Other indicators of a shifting market are new home construction sales have slowed so incentives have increased and apartment rentals have slowed which has caused them to market more to RE agents to bring them renters. We’re also starting to see investors hold out recently and talks in circles such as Lifestyles Unlimited International (a HUGE investor group) are advising investors to hold off and wait for the recession to hit before they ramp up again. The founder of LUI, Del Walmsley, recently wrote this on his Facebook page, “Now with the market peaking it is time to be conservative in your underwriting of deals. All of the great deals you have done over the last few years could be overshadowed quickly by a few bad deals that loose money as the market turns down from interest changes, property tax increases, run away price increases and salesman greed.”
My colleagues believe 2017 will still be a good year. My pipeline indicates it will be as well. However, I’m cautiously optimistic and will plan accordingly.
Here’s HAR’s November housing market report (December should be out w/in the next few weeks): https://www.har.com/content/mls/?m=11&y=16
– Editorial opinion by Erica Stietenroth, REALTOR