Competitive Katy/Cinco Ranch Housing market (Houston, Richmond: rental homes, houses, transfer)

[StephCM]

My husband and I are hopeful to relocate to Cinco Ranch area in the fall, but I'm getting wind that it is really quite competitive right now and cash buyers are snapping up homes fast. Anyone familiar with the market over there right now? What it might be like over the next few months? Tips/recommendations? I would really hate to have to rent for while and move twice with young kids.

[Jtxg]

Yes, it's like that in that whole general area right now (and probably most of the metro area). Homes in Cross Creek are selling over list price with multiple offers.

I'm about to list my house in Richmond and the Realtor advised me that there will most likely be several offers above list price - and to not be surprised if a couple are cash. My house is less than two years old and will be under $300k, and the agent says a lot of investors are targeting this market as well.

[futuregleam]

Yes. If you haven’t already, look up the houses on har.com. Har.com’s days on the market indicators freeze after a house go into option pending status. That gives you a really good idea how hot the market is. Everything gets snatched up after a couple days, unless the house is not desirable. Rental homes seem to not be as hot.

Edit: my advice to you is to rent in the same school district as where you want to buy. After the summer ends, the market usually cools and hopefully you’ll get a good deal then. At least that way your kids won’t have to transfer school twice

[StephCM]

That is helpful to know it may cool down after summer. I think we are willing to wait up until january '22 if that means we don't have to move twice. Thank you!

[Houston321]

It isn't going to cool after the summer. It will cool eventually, but not that quick. Supply and Demand is just one of the many factors that is driving this. There are serious, if not-crisis level, supply shortages, manufacturing issues, inflation, and many other factors that are combining to cause this issue. On a conference call today with many in the know....and there is no end is sight to massive shortages in materials, and steadily increasing prices. Things are getting tighter for the summer, not better.
It is turning into a national crisis that has dire consequences....but instead you can turn on the news and you barely hear a word.

[NTexas2010]

Originally Posted by Houston321

It isn't going to cool after the summer. It will cool eventually, but not that quick. Supply and Demand is just one of the many factors that is driving this. There are serious, if not-crisis level, supply shortages, manufacturing issues, inflation, and many other factors that are combining to cause this issue. On a conference call today with many in the know....and there is no end is sight to massive shortages in materials, and steadily increasing prices. Things are getting tighter for the summer, not better.
It is turning into a national crisis that has dire consequences....but instead you can turn on the news and you barely hear a word.

Agreed. I don't think there is a "timing the market" potential play here. All one has to do is go to Lowes/Home Depot and look at the prices of lumber. Between lumber mill shutdowns in 2020, material and labor shortages, and now a housing-boom, prices are already on the upswing. With respect to consumer goods and specifically lumber, those prices will never return to pre-2020 prices. Why would they - the free market has dictated that there is continued demand for these materials at these newly inflated prices. Building materials are not like consumer electronics - they do not go down in price over time.

I would say start looking now, especially if OP is considering an existing home versus a new build. Expect this to be a seller's market for the foreseeable future, so waiting for "the right time" to buy may have one waiting for an undetermined amount of time. I would be house hunting with the intent to buy now versus later.

[Htown2013]

As crazy as it is here, it is much better than other parts of the country. Price appreciation has not yet been as bad, I think our high property taxes partially keep that in check.

What is the deal with lumber prices? For those who have to move, a home is a home. Do we think home prices are a precursor to a larger inflation reset problem, or a temporary "bubble" due to supply and demand? List prices haven't been too crazy here yet, it's the lack of inventory/selection and bidding wars that get to me. Other places in the country it has been insane.

My wife wants a bigger house, but we do not have to move. I'm intentionally staying out of this market, as our current house is good enough.

I'm hoping this market eventually cools off, as we can wait a few years without up-sizing, but if we wait more than 5 years, enough of "family life" will have past us by that it is no longer worth moving.