Category Archives: Kansas City Market Stats

You’re Going to Need Help

01 Wednesday Jul 2015

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I’ve been in the real estate market almost 15 years now and I’ve never witnessed a market like Kansas City is experiencing this year. We’ve been talking for months about the inventory shortage and low interest rates. What this has created is a plethora of difficulties in the real estate world. I feel like so many people are still trying to ‘go it alone’ when it comes to buying and selling and I worry, especially right now, they may be in over their heads. When people that aren’t being represented run into issues, the first person they tend to call is a REALTOR to ask their advice. This has been happening more and more, and most often, the agent will give a small piece of advice and then bow out unless they’re going to be hired to represent the deal. These situations have been common lately—are you prepared to handle them on your own?

1. Buyer bidding wars. Are you ready with your offer on paper? What will the market bear in this neighborhood, how high can you bid? What are the risks involved with going over asking price? What items can help strengthen your offer?

2. Seller remorse. A seller puts their home on the market and sells it on the first day. Some sellers are ecstatic, others are unprepared to move quickly and may think they under-priced their home. How do you deal with this? How can you help the seller feel more comfortable?

3. Low appraisal. What can happen when the appraisal comes in under contract price after a bidding war? What are your options as a buyer? What are the sellers options?

4. Backup offers and inspections. When there’s a bidding war and the ‘losing’ party still wants the house, they have the option of putting in a backup offer that will take over if the winning offer falls through. This can usually happen during inspections. What can the winning party do to keep the offer together instead of having the seller just balk and go to the next buyer?

5. Buyer remorse. Buyers today can feel like they were rushed into making an offer because of the low inventory, then feel like they overpaid. What can sellers do to keep the buyer on the line when they’re feeling some of that remorse creep in?

As you can see….You’re (most likely) Going to Need Help when buying or selling right now. Hiring a REALTOR skilled in negotiations with a calm demeanor can make all the difference. It’s an interesting market out there and I really would advise everyone to seriously consider hiring someone to help guide you through your transaction.

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Clay County, MO February Market Activity

19 Wednesday Mar 2014

Clay County, MO February Market Activity

We’re now seeing a steady increase in inventory. Hopefully, we will get this weather under control and be able to show and sell homes any day of the week. As of today’s post, activity has definitely increased, but buyers still need to jump quickly if they find a home they love. We can barely get them on the market before they’re sold. Mind you, I’m not complaining. 🙂
Here’s how last month’s stats stack up:

Clay/Ray Counties
Clay/Ray County sales were down for the month by 28.0% from 2013. Units were at 226 versus 314 last year. Year to date, unit sales are down 17.1%, with 509 units this year versus 614 last year. The average sales price for the month was up 12.8% from last year, with an average price of $158,296. Year to date, the average price is up 14.5%. The average price is $158,296, versus $139,919 last year. New listings were down 35 units to 403 or 8.0% from last year’s 438 units. Inventory is down 1.5% from last year and is running at 1,802 units. Inventory is up 103 units from last month.

Platte County
Platte County sales were down for the month by 8.7% from 2013. Units were at 115 versus 126 last year. Year to date, unit sales are down 6.0%, with 252 units this year versus 268 last year. The average sales price for the month was down 7.1% from last year, with an average price of $175,740. Year to date, the average price is up 11.4% from last year. The average price is $200,718 versus $180,138 last year. New listings in Platte County were down 13 units to 159, down 7.6% from last year’s 172 units. Inventory decreased 4.2% from last year and is running at 739 units. Inventory is down 1 unit from last month.

Heartland
Sales for the entire Heartland area were at 2,140, down for the month by 9.2%, or 217 units. The average price was up 2.8%, and averaging $167,496. Year to date, sales were down 8.4% or 395 units for a total of 4,292 for 2014. The average price for the year is running at $171,246, up 7.7% from 2013’s average of $159,014.

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Clay County Market Activity Update

24 Monday Feb 2014

Clay County Market Activity Update

Clay/Ray Counties
Clay/Ray County sales were down for the month by 19.0% from last year. Units were at 243 versus 300 last year. The average sales price was up 16.4% from last year, with an average price of $162,358. New listings were down 36 units to 434 or 7.7% from last year’s 470 units. Inventory is down 4.6% from last year and is running at 1,699 units.

Platte County
Platte County sales were down for the month by 14.1% from 2013. Units were at 122 versus 142 last year. The average sales price for the month was up 34.5% from last year, with an average price of $228,441. New listings in Platte County were down 17 units to 169, down 9.1% from last year’s 186 units. Inventory decreased 4.3% from last year and is running at 740 units.

Heartland
Sales for the entire Heartland area were at 2,204, down by 5.4%, or 127 units.
The average price was up 13.0%, and averaging $175,124.

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Kansas City December Market Activity and Final 2013 Stats

20 Monday Jan 2014

Kansas City December Market Activity and Final 2013 Stats

I hate to sound like a broken record, but at least it’s a good song!
Sales were actually down over the holidays, which is always expected. They didn’t drop much, though, which is a sign of how well the housing market is actually doing. Home prices are rising and inventory is still low. My main piece of advice today is to get your house listed before everyone else does in the spring. You’ll have the advantage right now of little to no competition, if you’re looking to sell before summer. As always, let me know if I can answer any questions!

Clay/Ray Counties
Clay/Ray County sales were down for the month by 0.5% from 2012. Units were at 198 versus 199 last year. Year to date, unit sales are up 6.6%, with 4,139 units this year versus 3,884 last year. The average sales price for the month was up 4.2% from last year, with an average price of $156,742. Year to date, the average price is up 8.8%. The average price is $159,178, versus $146,322 last year. New listings were down 14 units to 279 or 4.8% from last year’s 293 units. Inventory is down 2.3% from last year and is running at 1,675 units. Inventory is down 127 units from last month.

Platte County
Platte County sales were down for the month by 42.3% from 2012. Units were at 60 versus 104 last year. Year to date, unit sales are up 1.9%, with 1,750 units this year versus 1,718 last year. The average sales price for the month was up 13.6% from last year, with an average price of $227,682. Year to date, the average price is up 6.9% from last year. The average price is $205,030 versus $191,889 last year. New listings in Platte County were down 17 units to 112 or 13.2% from the 129 units last year. Inventory decreased 3.3% from last year and is running at 738 units. Inventory is down 60 units from last month.

Heartland
Sales for the entire Heartland area were at 1,364, down for the month by 16.3%, or 266 units. The average price was up 7.4%, and averaging $190,179. Year to date, sales were up 6.4% or 1,864 units for a total of 31,204 for 2013. The average price for the year is running at $183,435, up 9.1% from 2012’s average of $168,208.

*Data obtained from Heartland MLS

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Freezing Temps, Thawing Market

06 Monday Jan 2014

Freezing Temps, Thawing Market

I adore my crazy real estate friends. Right now, in Kansas City, it’s 3 degrees. Know what all my real estate friends are doing? Working. They’re showing properties, going through inspections and listing houses. IN THE BEGINNING OF JANUARY? You bet. Just look at this chart on the number of showings in the area. The heavy purple line is Clay County, and it’s moving up. Quickly. Looks like the holiday break is over and the barely frozen real estate market has thawed.
Now if only my car would warm up.

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Real Estate Market Activity, November

18 Wednesday Dec 2013

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Real Estate Market Activity, November

Last month, we had some negative news to go along with some positive. To start off, you’ll see that sales went down throughout the entire region, though Clay County fared better than others. So, we are seeing a bit of a holiday slowdown. The positive news is that sales prices continue to climb while inventory has remained low. This has kept Clay County’s absorption rate at 5.38 months—giving the advantage to sellers. So, if you’re looking to list and sell quickly, I would take some time, enjoy the holidays, and start talking to a REALTOR in early January, before we see an influx of homes coming on the market for spring.

Clay/Ray Counties
Clay/Ray County sales were down for the month by 17.1% from 2012. Units were at 214 versus 258 last year. Year to date, unit sales are up 5.9%, with 3,901 units this year versus 3,685 last year.
The average sales price for the month was up 13.9% from last year, with an average price of $162,850. Year to date, the average price is up 9.2%. The average price is $159,452, versus $146,009 last year.
New listings were down 38 units to 336 or 10.2% from last year’s 374 units. Inventory is down 3.3% from last year and is running at 1,802 units. Inventory is down 62 units from last month.

Platte County
Platte County sales were down for the month by 40.3% from 2012. Units were at 74 versus 124 last year. Year to date, unit sales are up 3.2%, with 1,666 units this year versus 1,614 last year.
The average sales price for the month was up 13.5% from last year, with an average price of $213,078. Year to date, the average price is up 6.6% from last year. The average price is $203,655 versus $191,094 last year.
New listings in Platte County were up 7 units to 160 or 4.6% from the 153 units last year. Inventory decreased 2.6% from last year and is running at 798 units. Inventory is down 38 units from last month.

Heartland
Sales for the entire Heartland area were at 1,828, down for the month by 8.9%, or 179 units. The average price was up 9.1%, and averaging $187,830. Year to date, sales were up 7.4% or 2,051 units for a total of 29,761 for 2013. The average price for the year is running at $183,013, up 9.3% from 2012’s average of $167,475.

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Kansas City Real Estate Market Activity, October

18 Monday Nov 2013

Kansas City Real Estate Market Activity, October

It looks as if the Kansas City area is settling in for the winter season. Inventory is low and will likely remain low until spring since many sellers have pulled their homes off the market for the holidays. (This is great news for you if you’re trying to sell.) Average sales prices are still on the rise, but not nearly at the pace they were in the last few months, June being the highest. There are buyers in the market and they’re looking to get settled before the end of the year. So, if you’re wanting to list, now might just be the right time for you. Little competition and a steady amount of buyers are two good ingredients for a successful sale. Please note: it’s important to have your REALTOR study the showings and activity in your particular price range and area before making a decision.

Clay/Ray Counties
Clay/Ray County sales were down for the month by 14.5% from 2012. Units were at 260 versus 304 last year. Year to date, unit sales are up 6.4%, with 3,646 units this year versus 3,426 last year.
The average sales price for the month was up 5.1% from last year, with an average price of $158,720. Year to date, the average price is up 8.9%. The average price is $159,206, versus $146,266 last year.
New listings were up 21 units to 523 or 4.2% from last year’s 502 units. Inventory is down 1.8% from last year and is running at 1,939 units. Inventory is down 36 units from last month.

Platte County
Platte County sales were down for the month by 21.8% from 2012. Units were at 111 versus 142 last year. Year to date, unit sales are up 4.9%, with 1,566 units this year versus 1,493 last year.
The average sales price for the month was down 0.4% from last year, with an average price of $187,461. Year to date, the average price is up 5.9% from last year. The average price is $202,795 versus $191,486 last year.
New listings in Platte County were down 15 units to 212 or 6.6% from the 227 units last year. Inventory decreased 7.0% from last year and is running at 836 units. Inventory is down 63 units from last month.

Heartland
Adjusted Sales* for the entire Heartland area were at 2,221, down for the month by 8.3%, or 202 units. The average price was up 9.3%, and averaging $184,529. Year to date, sales were up 8.3% or 2,140 units for a total of 27,847 for 2013. The average price for the year is running at $182,616, up 9.3% from 2012’s average of $167,041.

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2014 Real Estate Forecast

31 Thursday Oct 2013

Posted by in Home Buyer Advice, Home Seller Advice, Kansas City Market Stats, MO, Moving

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The Kansas City Regional Association of Realtors brought Lawrence Yun, NAR’s Chief Economist, in to shed some light on what the real estate industry can expect in 2014.

Right now, inventory is bouncing at 13 year lows. This has contributed to our rising prices and a new crop of For Sale by Owners. Nationally prices have continued to rise in the double digits throughout 2013 and with the current inventory shortage, this should continue through 2014. We all have witnessed some areas of Kansas City tracking at a good rate, so please visit my previous blog posts or contact me to find out the exact numbers for your particular area.

Dr. Yun stressed the importance of our need for more new construction, as new construction inventory is at a 50 year low. He said new home starts need to reach 1.5 million or we will have a persistent inventory shortage nationwide. Kansas City’s housing starts are at about half of their average. Another interesting stat showed us the gap between new and existing home prices is larger than it’s ever been. The only way this can be fixed is to have a dramatic increase in resale home prices. Right now, we are battling appraisals on about every other transaction. Consumers can rest assured real estate agents in Kansas City are fighting the battle against low appraisals with fervor. We are doing our best to keep those prices moving!

new home inventory

Photo courtesy of KCRARphotos

One of the most surprising stats was the fact that 30% of the transactions are cash. Lawrence stated further studies have indicated many parents have purchased homes for their children with cash and they are actually becoming the ‘lender’, having the payments with interest paid to them instead of a bank. Others are paying cash for the house to make their offers more appealing than the others that would be bidding on the same property. After the home closes, they are taking out Home Equity loans to finance the property and have the tax benefits from doing so.

The rental population continues to grow with home ownership flat lining at 64%. Home ownership is primed to grow, according to the historical data, but enough jobs have to be created in order to get renters into homes. The rental market is dealing with a large amount of college graduates with high debt and inadequate jobs. Actual household formation is increasing, it’s been low since 2007. Unfortunately, it’s not yet turning into an increase of new home buyers. However, the current wealth of homeowners is at a staggering amount, while the average renter has about $4000 total wealth. (A great reason to purchase a home!)

homeowner households

Photo courtesy of KCRARphotos

Some good news? Missouri and Kansas’ shadow inventory of distressed property is not only lower than the U.S. average, but has also shown only gradual changes (with the exception of the 2010 spike) over the last 13 years. There are bubbles in other areas that will hit soon, New York is one of the highest, almost double that of the entire U.S.

Photo courtesy of KCRARphotos

Photo courtesy of KCRARphotos

Interest rates will remain low, taking into account they were at 8% or higher 13 years ago. Dr. Yun stated they should increase to 5.3% by the end of 2014.

Photo courtesy of KCRARphotos

Photo courtesy of KCRARphotos

He predicted steady sales throughout 2014 with no increase in the number of sales, but the increase in home prices should help offset the lack of growth.

Another note, there has not been a meaningful increase in REALTOR membership which means less competition overall.

I felt this was one of the better forecasts as it seems more realistic than it has in year’s past. Trust me, there’s been several years we’ve left this forecast wanting to jump off a bridge and last year was full of unknowns. Since we’re finally seeing some steadying in the market, the economists are leaving less to chance and making strong predictions. To me, this in itself is positive.

Special thanks to Dr. Lawrence Yun for making the trip to Kansas City. Click here for all the slides from the presentation.

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Kansas City Real Estate Market Activity, September

18 Friday Oct 2013

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Kansas City Real Estate Market Activity, September

As discussed last month, Kansas City has become a very level housing market. In my opinion, the leverage in a transaction belongs only to the person that’s least motivated. For example, if a buyer has to have a home purchased within a certain time frame, the seller will have the advantage. The same thing can be said for a seller that has to unload a property. This is where agents need to recognize the hot buttons for their clients and also pay close attention to any hot buttons from the other party. Our negotiating skills will be put to the test along with our fabulous listening skills. Sales ARE still happening, but because sales have slowed down, we will see some discouraged sellers taking their homes off the market for the holidays. Buyers need to be aware of this and try not to hesitate when they find one they love.

Clay/Ray Counties
Clay/Ray County sales were down for the month by 4.1% from 2012. Units were at 256 versus 267 last year. Year to date, unit sales are up 6.7%, with 3,334 units this year versus 3,124 last year.
The average sales price for the month was up 10.1% from last year, with an average price of $160,875. Year to date, the average price is up 9.4%. The average price is $159,340, versus $145,722 last year.
New listings were up 89 units to 523 or 20.5% from last year’s 434 units. Inventory is down 0.9% from last year and is running at 2,015 units. Inventory is up 18 units from last month.

Platte County
Platte County sales were down for the month by 9.1% from 2012. Units were at 110 versus 121 last year. Year to date, unit sales are up 6.6%, with 1,441 units this year versus 1,352 last year.
The average sales price for the month was down 10.7% from last year, with an average price of $193,321. Year to date, the average price is up 6.5% from last year. The average price is $204,275 versus $191,834 last year.
New listings in Platte County were down 6 units to 207 or 2.8% from the 213 units last year. Inventory decreased 6.9% from last year and is running at 885 units. Inventory is up 25 units from last month.

Heartland
Adjusted Sales* for the entire Heartland area were at 2,311, up for the month by 5.3%, or 116 units. The average price was up 7.9%, and averaging $183,559. Year to date, sales were up 9.7% or 2,263 units for a total of 25,550 for 2013. The average price for the year is running at $182,483, up 9.4% from 2012’s average of $166,832.

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Clay County Real Estate Market Activity

17 Tuesday Sep 2013

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Clay County Real Estate Market Activity

What’s not showing on the chart? Absorption rate. In the Northland (Clay and Platte Counties) the absorption rate is running at a very level 6.4 months. We’ve seen some great inventory coming on and the sales have slowed down a little. Buyers are taking a bit more time with their decisions, as are sellers. This tug of war style of negotiating will likely continue if the absorption rate stays put.

Clay/Ray Counties
Clay/Ray County sales were down for the month by 2.5% from 2012. Units were at 312 versus 320 last year. Year to date, unit sales are up 5.4%, with 3,011 units this year versus 2,858 last year.
The average sales price for the month was up 10.6% from last year, with an average price of $170,876. Year to date, the average price is up 9.2%. The average price is $159,108, versus $145,680 last year.
New listings were up 42 units to 571 or 7.9% from last year’s 529 units. Inventory is down 3.2% from last year and is running at 1,997 units. Inventory is down 9 units from last month.

Platte County
Platte County sales were down for the month by 11.7% from 2012. Units were at 135 versus 153 last year. Year to date, unit sales are up 6.5%, with 1,312 units this year versus 1,232 last year.
The average sales price for the month was up 14.4% from last year, with an average price of $227,906. Year to date, the average price is up 8.7% from last year. The average price is $205,350 versus $188,894 last year.
New listings in Platte County were up 5 units to 223 or 2.3% from the 218 units last year. Inventory decreased 9.0% from last year and is running at 860 units. Inventory is down 20 units from last month.

Heartland
Adjusted Sales* for the entire Heartland area were at 2,720, up for the month by 7.1%, or 181 units. The average price was up 10.5%, and averaging $191,574. Year to date, sales were up 9.8% or 2,077 units for a total of 23,175 for 2013. The average price for the year is running at $182,336, up 9.5% from 2012’s average of $166,453.

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