Katy Real Estate Heats Up: Demand Surges Below $800k While High-End Market Stays Hot in October 2024

The Katy real estate market in October 2024 showcased notable dynamics in both the below $800k and above $800k segments, reflecting shifting buyer behavior and market conditions. Here is a detailed look at how these two segments evolved compared to September 2024.

Below $800k Market Overview

In October, the below $800k market experienced a 1.9% decrease in the number of for-sale properties compared to September. However, despite this drop in available inventory, the number of sold properties surged by 12.1%, indicating that demand remains robust and buyers are determined to close deals quickly.

Interestingly, while the average price per square foot (SF) in this market has shown a slight downward trend since January 2024, decreasing by 1.9%, the median home price rose by 6.2% during the same period. This divergence highlights how competitive the market has been, with strong demand likely driving up median prices even amid price adjustments at a per-square-foot level.

In October 2024, the average price per SF stood at $157, and the average home price was $387,436. The Month supply of Inventory remained steady at 3.2 months, consistent with September. This stability in supply, combined with high demand, suggests a balanced but competitive market for buyers and sellers alike.

Above $800k Market Overview

The above $800k market painted a slightly different picture. The number of for-sale properties in this segment increased by 7.5% in October compared to September, while the number of sold properties also rose by 5.6%. This combination reflects a "hot" market in the higher-end segment, driven by strong interest from buyers willing to invest in premium properties.

In terms of pricing, the average price per SF rose by 8.1%, signaling that buyers are willing to pay more per square foot, possibly for luxury finishes, upgraded amenities, or high-end features. However, the median price decreased by 2.7%, indicating some moderation at the top end of sales.

For October 2024, the average price per SF in this segment was $224, while the average home price was $1,034,921. The Month Supply of Inventory stayed consistent with September, standing at 4.3 months, reflecting a steady supply-demand balance in this upper-tier market.

Key Takeaways

• Below $800k Market: High demand, rising median prices, but steady inventory suggest a highly competitive environment.
• Above $800k Market: Increasing inventory alongside high demand underscores a "hot" market. Buyers are spending more per square foot, but there is some moderation in median prices.

Katy continues to show resilience and adaptability in both market segments, with strategic shifts that highlight the diverse needs of buyers. Whether you are buying, selling, or simply observing, these trends point to a vibrant and dynamic real estate market. Stay tuned for further updates as the year progresses!

I'd love to hear your thoughts on this market update! Have you observed similar trends in your area, or do you have insights on how the market might evolve in the coming months? Drop your thoughts in the comments!