Olathe residential housing statistics February 8th, 2013
Olathe is wonderful suburb of Kansas City. Olathe adjoins Overland Park, Gardner, Lenexa and DeSoto
There are 504 homes listed for sale in Heartland Multiple Listing Service (MLS) in Olathe KS as of February 8th, 2013. Current asking prices in Olathe range from $50K for a single family home in the Belmont neighborhood to $4.6 Million for a Lodge Estate home on 40+ acres. Asking prices are the same as listing prices.
In the last 90 days there have been 439 homes sold in Olathe. Selling home prices, in the last 3 months, range from $31,500 for a small single family home on Loula to over $1.5 Million for a large new construction estate style home in cedar creek the reserve.
Getting some meaning out of the housing numbers - figuring the absorbtion rate.
Defining absorbtion rate
Absorbtion rate is how many homes are selling per month on average. Using the absorbtion rate and comparing it to the available list of homes for sale will provide the months of inventory on hand. The number of months of inventory gives a rule of thumb measurement about the state of the housing market. The lower the number of months of inventory on hand the better it is for home sellers. Home sellers have the advantage when inventory is low and demand is high because there is more demand than supply. If the market had been dropping it might allow home prices to level off and stop dropping. Houses in good condition with above average advertising and marketing can, and do, move very quickly
Using absorbtion rate
Taking the number of homes sold and dividing by 3 months gives a sales pace or absorbtion rate of homes 146.3 homes sold per month. With the 504 homes for sale, divided by the current demand means Olathe, in general, is in a Seller advantaged market with 3.4 months of inventory. Demand is outstripping supply. A seller advantaged housing market is thought of anything under 5.5 - 6.5 months of inventory based on taking the number of homes for sale divided by the absorbtion rate.
So what does that mean to a home seller? Price your home well compared to the competition and in its current condition and you should be in good spot. Even in a seller advantaged market buyers will still not buy overpriced homes or homes that are in poor condition compared to the other homes on the market.
Beat the crowd, put your home on the market NOW. Call Ken Jansen today at 913-908-2215
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