Withstanding the possible expiration of the home buyer tax credit, home sales in the Katy are continued to post respectable numbers for the month of October. Sales volume was up slightly for both area 36 and area 25. While North Katy saw a slight increase in price per square foot, South Katy sales were averaging about two percent less per square foot. Communities like Cinco Ranch, Seven Meadows and Grand Lakes continued to outpace the general market.
Recent economic data point to continued strength of area real estate prices. Although unemployment data still pose a concern going forward, it appears the Houston are housing market may have avoided much of the housing woes seen elsewhere. Construction and manufacturing in the area have taken a hit, but exchange rates have softened the blow and made American goods more affordable overseas. Energy prices have also held up rather well, although it will be some time before the natural gas market recovers.
The recent extension and expansion of the home buyer tax credit, should continue to stimulate sales on the lower end of the market. Buyers who have been contemplating a possible purchase or move can now take advantage of the credit through June 2010. Buyers should be aware that these record low mortgage rates won't last forever. Once the Fed winds down purchases of mortgage-backed securities, we will likely see a gradual increase in mortgage rates, corresponding with the strength of the overall market.