Kansas City Real Estate Market Report
The buyers are out in full force as they try to find and buy a home prior to the deadline for the $8,000 Tax Credit. They are putting quite a dent in our inventory.
One of the things I look at when I'm listing a home for sale (or helping buyers determine what to offer) is the Market Absorption Rate. This number tells us how many months supply of homes are available for sale in Kansas City. Here are some of the numbers by zip code:
Zip Code 66208 Months’ Supply of Homes For Sale Last 180 days 4.4 - Last 90 days 4.2
Zip Code 66205 Month’s Supply of Homes for Sale Last 180 days 4.5 - Last 90 days 4.5
Zip Code 64113 Month’s Supply of Homes for Sale Last 180 days 6.14 - Last 90 days 6.5
Zip Code 64114 Month’s Supply of Homes for Sale Last 180 days 4.77 - Last 90 days 4.68
Zip Code 64131 Month’s Supply of Homes for Sale Last 180 days 6.22 - Last 90 days 6.30
More than a 6 month supply means that we are in a Buyer's Market.
Less than a 6 month supply means that we are in a Seller's Market.
As you can see, some areas of the Kansas City Real Estate Market have flipped into a Seller's Market while other areas are hovering on the edge. In the areas desired most by buyers, I have noticed an increase in multiple offers. This happens when several buyers want a particular home in a particular area. Getting multiple offers on a home requires careful positioning prior to going Active with the listing.But I digress; back to the general stats.
Do the numbers we're looking at mean that the Kansas City Real Estate Market is turning around? Have we indeed hit bottom? No one will know that until we have many months of decreasing inventory and a slow, steady increase in the average sold price. And we do want the increase in sales price to be slow so that we can sustain growth for the long term.
Is the $8,000. Tax Credit responsible for the turnaround? IMO, it has had a huge effect on our market. Will the trend continue after the Tax Credit expires? Unknown but I expect some buyers will be less likely, perha;s unable, to purchase without it. How about the slacking off of some buyers during the winter months? Well, in Kansas City, if someone is out looking at homes in the cold, wet snow, they are serious about buying.
The numbers above show only a few of the many zip code areas within our Kansas City area and each zip code has many subdivisions within that zip code. Overall, it seems that things are looking up in our market but please remember to check all of the available data with a professional before listing your home for sale. There are many nuances that affect the value of any given home.
As always, the homes that sell the fastest for the best price are those that are most popular with buyers. The areas that are preferred by the most people buying homes will be the first to convert into a Seller's Market. Hopefully, we will see some of these conversions stick in 2010. Statisticians are predicting another round of foreclosures in the coming year and that will have an effect on the turn around we are now seeing.
**If you are a buyer who wants to receive the $8,000 Tax Credit, you need to close before November 30th - that's only 57 days from now! Title Companies and Mortgage Lenders do not process on weekends and holidays. (Thanksgiving & Columbus Day for instance.)
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