Hi friend! I know 2020 was an unprecedented year for everyone alive, but 2020 was an insane year in real estate, especially for the real estate market in the Greater Houston area. I was lucky enough to participate in the real estate market all of 2020, and it happened to be my greatest year, for which I am super grateful.
Today, I want to share with you what real estate looked like for 2020 by giving to statistics, and facts, with a dash of opinion and perspective. For this particular blog post, I will be focusing on Katy, Texas. Let's dive in.
Links to other real estate market analyses: Katy Texas, The Woodlands Texas, Cypress Texas, Conroe Texas, Kingwood Texas, Spring Texas, Klein Texas, Magnolia Texas, and Montgomery Texas. P.S. Email me if you would like an analysis for a particular neighborhood!
Katy Real Estate Market Analysis for 2020
In 2020, 6823 3+ bedrooms were sold in the city of Katy. The average year built for those homes was 2008. The average square footage was 2,734. The average sales price was $329,927. The most expensive home sold in 2020 was $2,225,000. The average price per square foot was $117. The average lot size was 9,043 square feet. The list price to sales price was 98.19%. The median days on market was 36 days. 3,711 homes sold in 21 days or less, with the median days on market for those homes was 6 days. 2,077 homes sold in 6 days or less.
Katy vs. Other Area Markets
Compared to The Woodlands:
| name of city or neighborhood | katy,texas | vs. | the woodlands, texas |
| how many 3+ bedrooms sold | 6823 | 2067 | |
| average year built | 2008 | 2000 | |
| average square footage | 2,734 | 3264 | |
| average sales price | $329,927 | $536,842 | |
| price most expensive home sold | $2,225,000 | $6,000,000 | |
| average price per square foot | $117 | $154 | |
| average lot size | 9,043 | 11,657 | |
| list price to sales price | 98.19% | 97.50% | |
| average asking price | $297,491 | $558,787 | |
| median days on market | 36 | 28 | |
| how many sold in under 21 days | 3,711 | 1,085 | |
| median dom for homes sold under 21 days | 6 | 6 | |
| how many homes sold in less than 6 days | 2,077 | 607 |
Compared to Tomball:
| name of city or neighborhood | katy,texas | vs. | tomball, texas |
| how many 3+ bedrooms sold | 6823 | 2143 | |
| average year built | 2008 | 2008 | |
| average square footage | 2,734 | 2,608 | |
| average sales price | $329,927 | $313,059 | |
| price most expensive home sold | $2,225,000 | $2,473,237 | |
| average price per square foot | $117 | $119 | |
| average lot size | 9,043 | 13,500 | |
| list price to sales price | 98.19% | 98.44% | |
| average asking price | $297,491 | $319,192 | |
| median days on market | 36 | 24 | |
| how many sold in under 21 days | 3,711 | 1,113 | |
| median dom for homes sold under 21 days | 6 | 6 | |
| how many homes sold in less than 6 days | 2,077 | 639 |
Compared to Cypress:
| name of city or neighborhood | katy,texas | vs. | cypress, texas |
| how many 3+ bedrooms sold | 6823 | 4,058 | |
| average year built | 2008 | 2008 | |
| average square footage | 2,734 | 2845 | |
| average sales price | $329,927 | $338,158 | |
| price most expensive home sold | $2,225,000 | $1,816,425 | |
| average price per square foot | $117 | $118 | |
| average lot size | 9,043 | 10,401 | |
| list price to sales price | 98.19% | 98.29% | |
| average asking price | $297,491 | $345,551 | |
| median days on market | 36 | 20 | |
| how many sold in under 21 days | 3,711 | 2,248 | |
| median dom for homes sold under 21 days | 6 | 5 | |
| how many homes sold in less than 6 days | 2,077 | 1,307 |
Compared to Spring (6046 homes sold in all of “Spring”, but data below excludes Spring ISD):
| name of city or neighborhood | katy,texas | vs. | spring, texas |
| how many 3+ bedrooms sold | 6823 | 6046 (4951) | |
| average year built | 2008 | 2001 | |
| average square footage | 2,734 | 2,813 | |
| average sales price | $329,927 | $323,259 | |
| price most expensive home sold | $2,225,000 | $2,435,000 | |
| average price per square foot | $117 | $113 | |
| average lot size | 9,043 | 10,528 | |
| list price to sales price | 98.19% | 98.41% | |
| average asking price | $297,491 | $329,469 | |
| median days on market | 36 | 22 | |
| how many sold in under 21 days | 3,711 | 2725 | |
| median dom for homes sold under 21 days | 6 | 6 | |
| how many homes sold in less than 6 days | 2,077 | 1478 |
Compared to Klein (Klein ISD):
| name of city or neighborhood | katy,texas | vs. | klein, texas |
| how many 3+ bedrooms sold | 6823 | 4312 | |
| average year built | 2008 | 1998 | |
| average square footage | 2,734 | 2680 | |
| average sales price | $329,927 | $281,338 | |
| price most expensive home sold | $2,225,000 | $2,103,000 | |
| average price per square foot | $117 | $105 | |
| average lot size | 9,043 | 9,836 | |
| list price to sales price | 98.19% | 98.50% | |
| average asking price | $297,491 | $288,528 | |
| median days on market | 36 | 20 | |
| how many sold in under 21 days | 3,711 | 2449 | |
| median dom for homes sold under 21 days | 6 | 6 | |
| how many homes sold in less than 6 days | 2,077 | 1352 |
Compared to Kingwood:
| name of city or neighborhood | katy,texas | vs. | kingwood, texas |
| how many 3+ bedrooms sold | 6823 | 1057 | |
| average year built | 2008 | 1993 | |
| average square footage | 2,734 | 2824 | |
| average sales price | $329,927 | $314,194 | |
| price most expensive home sold | $2,225,000 | $1,640,000 | |
| average price per square foot | $117 | $108 | |
| average lot size | 9,043 | 11,213 | |
| list price to sales price | 98.19% | 96% | |
| average asking price | $297,491 | $321,677 | |
| median days on market | 36 | 27 | |
| how many sold in under 21 days | 3,711 | 543 | |
| median dom for homes sold under 21 days | 6 | 6 | |
| how many homes sold in less than 6 days | 2,077 | 304 |
Compared to Magnolia:
| name of city or neighborhood | katy,texas | vs. | magnolia, texas |
| how many 3+ bedrooms sold | 6823 | 1417 | |
| average year built | 2008 | 2008 | |
| average square footage | 2,734 | 2640 | |
| average sales price | $329,927 | $361,781 | |
| price most expensive home sold | $2,225,000 | $2,500,000 | |
| average price per square foot | $117 | $134 | |
| average lot size | 9,043 | 48,579 | |
| list price to sales price | 98.19% | 98.15% | |
| average asking price | $297,491 | $369,440 | |
| median days on market | 36 | 40 | |
| how many sold in under 21 days | 3,711 | 642 | |
| median dom for homes sold under 21 days | 6 | 7 | |
| how many homes sold in less than 6 days | 2,077 | 335 |
Compared to Conroe:
| name of city or neighborhood | katy,texas | vs. | conroe, texas |
| how many 3+ bedrooms sold | 6823 | 3,295 | |
| average year built | 2008 | 2007 | |
| average square footage | 2,734 | 2,438 | |
| average sales price | $329,927 | $289,416 | |
| price most expensive home sold | $2,225,000 | $11,797,504 | |
| average price per square foot | $117 | $119 | |
| average lot size | 9,043 | 21,562 | |
| list price to sales price | 98.19% | 97.44% | |
| average asking price | $297,491 | $298,984 | |
| median days on market | 36 | 39 | |
| how many sold in under 21 days | 3,711 | 1,415 | |
| median dom for homes sold under 21 days | 6 | 7 | |
| how many homes sold in less than 6 days | 2,077 | 743 |
Compared to Montgomery:
| name of city or neighborhood | katy,texas | vs. | montgomery, texas |
| how many 3+ bedrooms sold | 6823 | 1817 | |
| average year built | 2008 | 2009 | |
| average square footage | 2,734 | 2841 | |
| average sales price | $329,927 | $410,619 | |
| price most expensive home sold | $2,225,000 | $2,250,000 | |
| average price per square foot | $117 | $140 | |
| average lot size | 9,043 | 27,598 | |
| list price to sales price | 98.19% | 97.94% | |
| average asking price | $297,491 | $421,688 | |
| median days on market | 36 | 49 | |
| how many sold in under 21 days | 3,711 | 748 | |
| median dom for homes sold under 21 days | 6 | 7 | |
| how many homes sold in less than 6 days | 2,077 | 387 |
2019 vs. 2020
To really focus in on what happened in 2020, I decided to concentrate on homes between 2500 and 3500 square feet, and ones that went under contract in 10 days or less. The average sales price year over year, increased 2% from 2019 to 2020. But one statistic that speaks to me is that only the amount of homes sold in that bracket almost double year over year.
Because I only calculated a 2% increase in value for Katy as a whole, I decided to focus on two popular neighborhoods to learn more. Firethorne and Cinco Ranch.
In 2019, 217 homes sold in Firethorne and 853 homes in Cinco Ranch. In 2020, 325 homes sold in Firethorne and 935 homes in Cinco Ranch. The sales price in Firethorne year over year increased by 8%, and the sales price in Cinco Ranch increased by 4.3%.
What has driven the market changes?
There are many things that have driven this change in market and most of them are probably obvious, so don't mind me here stating the obvious. The biggest factor for the increase in price, would have to be the low inventory coupled with the high demand. Low inventory, in some price points, has been an on-going problem since Hurricane Harvey hit in 2017. While Hurricane Harvey physically didn't affect the Katy area too much, I don't think the under $500k market, when looking at all of the Houston area, has truly recovered from the aftermath of that national disaster. And each year after that, I think the national political climate has contributed to seller's reluctance to sell. Low inventory is also a result of more investors holding on to properties, and investors entering our market, making it hard to a first time home buyer to get in. Cash is king in real estate, and this has been a huge problem, as financed offers (especially first time home buyers and FHA buyers) are struggling to have their offer selected. The other large factor, is the increased desire to live in Katy. It is known for its amazing schools, has the perfect proximity to Downtown Houston, the Energy Corridor, and is considered very affordable for all the amenities and luxuries it has to offer. Most of the buyers in 2020 were relocation buyers, who were coming here for a new job opportunity, or for the pure fact that they were tired of their current home state. COVID-19 certainly had a huge impact on Katy market.
What should we expect for 2021 in regards to Katy Real Estate Market?
The five fastest selling neighborhoods in Katy ISD are: Cinco Ranch, Cross Creek Ranch, Firethorne, Grand Lakes, Pine Mill Ranch, Seven Meadows, and Silver Ranch.
Let's compare 10/25/2019 – 2/14/2020 and 10/25/2020 – 2/14/2021 to predict what the real estate market in Katy will look like for 2021.
1049 (2000-4000 sqft) homes sold within the first bracket and 1381 (2000-4000 sqft) homes within the second bracket. That is a 24% increase.
$106 a square foot with a median days on market of 48 days compared to $117 a square foot with a median days on market of only 14 days. When comparing sales price, I found an increase year over year of 11%.
If we look at January (to date) 2020 vs January (to date) 2021, we see this:
| year | 2020 | vs. | 2021 |
| homes sold | 1634 | 2140 | |
| average price per square foot | $110 | $126 | |
| median days on market | 39 | 11 |
As you can see, 2021 is off to an “on fire” start, which correlates with December being a record breaking month. That is almost a 13% increase from last year, and that days on market statistic, holy cow!
Big Take Aways
If you read nothing, but this paragraph, these are the take aways I want to share with you.
- Inventory is Katy is extremely low for the demand, but sales are up from the last two years.
- The good homes go under contract within 3-6 days.
- You can expect multiple offers, especially if the home is remodeled.
- Homes under $450k are known to sell for $10k – $20k over asking price.
- If you are financing your home purchase, offers with 20% or greater, with no contingencies including an appraisal waiver, a shorter (limited) option period, and a quick close are your only leg up when winning compared to a cash offer.
- The prices are up anywhere from 5-15%, depending on location and square footage, compared to last year.
- You will be paying an ultimate premium to purchase a home with a pool.
- Working with a local lender and experienced real estate agent is key!
Katy is Waiting for You
We are so happy you found our little corner of the interwebs. We look forward to y'all reaching out to us. We love to answer questions and welcome them. Recently we created some local maps, and you can download those by clicking the image/link above. Below, you will find an index of some very helpful information to assist you in learning more about the Houston suburbs. If you are relocating to our neck of the woods, we hope you reach out to us, because we would love to help you by being your local realtor and friend. Hugs, Jo.
Thoughtfully written for you by Jordan and the Jo & Co. Team.
We are Waiting for You
If you are looking to relocate to the Houston Area, we would love to meet you, and hear your story. Below you will find all of my contact information, as well as some homes for sale in the area. We truly look forward to hearing from you! P.S. Don't forget to check out our YouTube Channel!
If you are overwhelmed..
Now if you are feeling overwhelmed on where you should plant your roots, I would love to talk to you. You can schedule a call with me by click this link: http://byjoandco.com/call or just send us an email: [email protected]. There are some amazing communities all over the Houston suburbs. In this post, https://search.byjoandco.com/blog/best-neighborhoods-in-houston/, I deep dive into all the different suburbs/neighborhoods that you might want to consider, and why. There are many resources here, so please reach out if you are curious what to look at next! Thank you for trusting us.
Links to check out..
➟ Our YouTube Channel :: http://byjoandco.com/youtube
➟ How do property taxes work in Texas? :: http://byjoandco.com/propertytaxesintexas
➟ Things to do in The Woodlands :: http://byjoandco.com/inthewoodlands
➟ Safest Neighborhoods in Houston :: http://byjoandco.com/safesthouston
➟ Best Neighborhoods in Houston :: http://byjoandco.com/bestneighborhoods
➟ Houston Texas Where to Live :: http://byjoandco.com/houstontexaswheretolive
➟ First Time Texas Home Buyer :: http://byjoandco.com/firsttimetexasbuyer
What next?!
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