Poised for Equilibrium: Katy’s Real Estate Market Charts a Balanced Course into 2025

Katy Real Estate Market Update for November 2024: A Tale of Two Price Segments

As we close out November 2024, the Katy real estate market continues to show dynamic shifts, with notable distinctions emerging between the sub-$800,000 segment and the luxury market above $800,000. Compared to November 2023, we’re seeing changes in inventory, pricing, and buyer activity that paint a picture of evolving market conditions. Here’s what you need to know.

Below $800K: More Inventory and Strong Demand

The market for homes priced below $800,000 in Katy is experiencing healthy and sustained demand, coupled with an increase in available inventory. In November 2024, the number of houses for sale rose by a significant 34.5% compared to the same period last year. More options on the market can often mean more negotiating power for buyers, but interestingly, the number of sold properties also jumped by a notable 12.4%, underscoring the fact that buyers have remained very active.

This steady demand is reflected in pricing metrics. The average sold price in this segment was $385,266, and the average price per square foot (PPSF) stood at $162, representing a 2.5% increase year-over-year. These figures signal that buyers remain willing to pay for quality properties despite a larger pool of listings. Additionally, the inventory in this sub-$800K bracket sat at around 4 months, compared to 2.9 months in November 2023. This jump in inventory levels is a key indicator that the market is moving toward balance—buyers now have more choices, and sellers must be more strategic in pricing and marketing their homes.

Above $800K: A Balanced Luxury Segment Emerges Shifting to the luxury segment, where prices exceed $800,000, the story is a bit different. Here, we’ve seen a striking increase in transactional activity. The number of houses for sale climbed by 63.2%, while the number of sold properties soared by an incredible 142.9% year-over-year. This significant uptick suggests that luxury buyers have returned to the market in force, fueling a much higher level of sales activity than we saw last November.

Despite this robust demand, pricing in the luxury segment shows a slightly different trend than the lower-priced market. While the average sold price was a hefty $974,608, the average price per square foot dipped by about 4.3%, coming in at $225. This small decline in PPSF may reflect buyers gravitating toward larger luxury properties or perhaps a shift in the type of luxury homes changing hands this year. Nevertheless, the inventory in the above-$800K segment stands at about 4.5 months—down by 8.2% from November 2023—indicating that this category, too, is moving into a more balanced territory. The luxury sector no longer appears to be a purely seller’s market but rather one characterized by a fair equilibrium between supply and demand.

What Does This Mean for Sellers? For homeowners looking to sell in this evolving environment, the key takeaway is that balance is becoming the new norm. While November 2023 might have been more firmly a seller’s market—especially below the $800K mark—November 2024 suggests greater equilibrium. For properties under $800K, you may still benefit from steady demand and rising PPSF, but you’ll need to stand out among a growing number of listings. Quality pricing, property condition, and strategic marketing will be crucial.

For those selling luxury properties, the significant uptick in sales activity is encouraging, but the slight dip in PPSF means you should set realistic expectations. Price competitively and ensure your property offers standout features, as well-informed buyers now have ample choice.

Looking Ahead As we approach the end of the year, the Katy market is firmly transitioning toward a balanced state. Both segments—below and above $800K—are showing signs of leveling out, giving buyers more leverage and encouraging sellers to be more strategic. The trend suggests that, by year’s end, Katy may be firmly in a balanced market position, setting the stage for a stable, more predictable 2025.