WOW! I just took a look at the lease numbers for this year and you would be SHOCKED!
We were already in a "RECORD SETTING" year for available lease listing inventory("Active" leases for sale) and those numbers were set to keep growing. Our continuing slower oil & gas economy had been rapidly adding lease properties to the local inventory and so the listing prices were really starting to plummet in the year-over-year number. NOT GOOD!!!
Well, along comes Hurricane Harvey at the end of the Summer and then ** BAM ** ... thousands of houses have instantly been flooded by the storm and so those families had to go somewhere. HELLO LEASE MARKET!!!
To give you an idea of how fast this happened, keep in mind that we already had over 630 available "single family" lease homes in South Katy (Katy ISD). As of the time of this post, we are only seeing maybe half of that(301) in the same area. Also, by the time you remove the multi-family+ numbers, we only show about
269 "Single-Family" leases available in the same area. So, in a matter of approximately 90 days, 400+ lease homes are off the market in what is not a very large area. (Numbers provided by Houston Association of Realtors)
SO, what does this mean for you???
Landlords: This is a great sign for landlords. We were already seeing where many landlords were losing $500 on value from the year before because of how many lease homes were available. Now, that has stopped and reversed itself. In most cases, those values have come all the way back and some have inched even higher. Plus, given the limited number of available lease homes that are left that did not flood, landlords are able to return to being pickier about their requirements and their ultimate lease values.
Homeowners: As a secondary BONUS and due to everything above, the lack of leasing inventory and the sudden increase in the pricing of the lease homes that were left has pushed many people back into the resale and new-construction market. When coupled with what was already a recovering housing market in Katy, we are seeing and will continue to see increasing values and lower days on market. I do not believe that this will not be a drastic increase, but it should create a nice jolt in purchasing and cause us to have a much stronger 1st Quarter of 2018.
So what are the takeaways from all of this?
- Lease prices are going back up and inventory is going down.
- Resale prices are definitely stabilizing, current inventory has decreased and days on market are down.
- Builders are feeling better about the economy and so they are not coming off their homes as much in peak seasons.
If you have any questions about this post or if you would like more specific detail on your home or neighborhood, just reach out to us here.