One of the questions I get asked most as a Realtor is “What’s the housing market doing these days?” Many who ask me this do so thinking they already know the answer—it’s a hot seller’s market. While that has certainly been the case for the past several years—even up through this summer, the housing market here in the KC Metro is changing.
How do we know? Great question! In Kansas City, when we have 2 months or less supply of homes available—meaning that if no one else listed their home for sale, everything listed now would sell out in 2 months or less—this is considered a Seller’s Market. Homes $250,000 and below have been selling in 2 weeks or less fairly consistently. Homes priced in the $250-300,000 range are selling in 3 weeks on average. Homes priced in the $300-400,000 range are taking just over a month to sell—this may surprise many, as it was not this long last year at this time. Homes valued in the $400-500,000 range are taking on average two months to sell. Homes valued at $500,000 and below have been in a Seller’s Market for at least the past two-three years at a minimum.
Inventory Supply of 2-4 months is considered a balanced market, favoring neither side. 4 months of inventory or more is a Buyer’s Market. Recently, only $1,000,000+ homes in the KC Metro have been in a Buyer’s Market.
While Kansas City is still in a Seller’s Market, we are seeing signs of change. Currently, over 41% of the homes for sale have had a price reduction. We were not seeing price reductions like this last year, and certainly not in 2017. Homes are selling at 96% of the original listed price across Johnson County. This tells us that sellers now are getting less for their homes than neighbors who sold last year. We are also seeing longer days on the market. Homes are not flying off the market as quickly and frequently as in months and years past. This is up 13.9% vs June 2018. That’s a huge jump!
So, what does this mean for you? If you are thinking about selling your home in the next year or two, you may want to move that time frame up to take advantage of the tail end of the current Seller’s Market (and record-breaking low-interest rates!). We never know when we will hit the tipping point.
The advantage of being both a seller and a buyer now vs. last year is tremendous! Last summer (and the summer before) many buyers were making offers on homes in multiple offer situations. They were one of 10 or sometimes even 20 other offers submitted on a single house—often pushing the purchase price above the original sales price. We are not seeing this nearly as often now. If we do end up with more than one offer on a home, it’s typically 2-3 tops. Many times, the offers are at or below the current sales price. If you’ve been waiting for the “tipping point” int the market, we very well could be there now.