Katy, TX Housing Market Report

The Katy, TX real estate market is currently undergoing a significant transition toward a buyer-friendly environment as of December 2025. With active inventory surging by 18.06% year-over-year to 31,689 units, the supply of available homes is outpacing demand. This shift is further evidenced by the increase in days on market, which has climbed to 93 days—a 20-day increase from the previous year. The sale-to-list ratio of 0.98 suggests that buyers are successfully negotiating prices below the original asking amounts, reflecting a cooling period for the Houston-The Woodlands-Sugar Land metro area.

Price trends in Katy have shown a consistent downward trajectory over the latter half of 2025. Since July, the median home value has declined from $340,086 to $335,563, representing a total year-over-year decrease of 3.26%. This cooling is likely driven by the combination of elevated inventory levels and higher borrowing costs, which have forced sellers to adjust their expectations. While home values are softening, the rental market remains remarkably stable, with the median rent of $1,947 showing a marginal 0.05% increase, indicating that demand for housing in the area remains high even as the purchase market recalibrates.

Looking ahead, the Katy market presents a strategic window for prospective homeowners who were previously priced out during the post-pandemic boom. Sellers should be prepared for longer wait times and must ensure their properties are priced competitively to stand out in a crowded field of listings. For buyers, the current climate offers more leverage and choice than has been seen in several years. However, with the pace of price declines slowing slightly in the final months of the year, the market may be approaching a new equilibrium point as it enters 2026.