Why is There so Much Katy Real Estate For Sale?
Katy real estate is greatly affected by the oil and gas business particularly since petroleum tends to be a mobile industry. Compared to to other fields of employment, there are an inordinate amount of oil employees transferred in and out of our area at any time. This is the primary reason why there are always a lot of homes on the market in Katy, particularly on the south-side of I-10.
According to Ron Hanlen of Network Funding, there is another factor currently driving Katy real estate inventory levels: Mortgage interest rates. Despite dire predictions about the impending rise of mortgage interest rates, rates have held onto historic lows, in the 4′s.
Ron said, “Once the tax credit expired, everyone expected that listings would go down. But they haven’t…they have gone up. With all of the negative media attention on housing it would be easy to consider that it is because the sellers are distressed in some way. Maybe they lost their job or they are trying to sell the home before it goes into foreclosure.
But here is the real reason why listings are up: Interest rates are at an all-time low. Despite the constant bombardment of negative media coverage, the vast majority of existing homeowners are very credit worthy, live within their means and have stable income. Experienced homeowners have seen interest rates in the 5′s, 6′s, and 7′s in the last several years. With interest rates in the 4′s, savvy homeowners know that when interest rates are at an all time low, it’s time to make a move.”
Even if a seller gets a little less for their house than they might in the next few years, this loss is easily made up on the buying end of the transaction.
Ron continued, “Mortgage rates can make a right turn at any second. Mortgage rates are not low because of anything that the Federal Reserve, Treasury, or Obama administration is currently doing. Mortgage rates are low because of global fear about the economy and financial system. This causes banks and investors to hoard their cash and park it into nice, safe and boring mortgage backed securities. You earn a very low interest rate in return for safety. But the financial markets and the global economy will turn around, and when it does it will move mortgage rates up with it.”
Ready to buy or sell a home in Katy? To discuss selling your house or to tour Katy homes, contact me. To search all the houses currently on the market in Katy/Houston see Home Search. I have sold Katy real estate for over 20 years and would be pleased to work together.
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