Checking The Pulse Of The Kansas City Real Estate Market

My Kansas City Regional Association of Realtors reports more good than bad news in its look back at November’s real estate statistics. So if your cup is HALF FULL, be sure to read the rest of this paragraph.  (If you’re cup is half-empty skip to paragraph 2.) You’ll be happy to hear that home sales rose nearly 62% in November of this year (2,548 sales) compared to November 2008 (1,518 sales). New home sales in November were up 16% when compared to October and up almost 52% when compared to November 2008.  November existing home sales were up almost 63% compared to November 2008. The average priced home in November was right at $160,100 after seeing an average sales price of $155,000 in November 2008. The average existing home sale’s price was $148,000 in November after an average home sale’s price of $136,000 the year before. New home inventory decreased  39% from the previous November —  with 2,091 current spec homes reported available. Resale inventory fell 7.4% in November — 12,568 homes compared to 13,568  in November 2008. The entire Kansas City metro area had 6.8 months of inventory on the market in November, which was a large improvement over the 7.4 months of inventory reported in October of this year.

Now, if your cup is HALF EMPTY, Kansas City Regional Association of Realtors reports that Kansas City home sales fell almost 4% when comparing November sales this year (2,454) to October’s sales (2,548).  November existing home sales were down 5.5% compared to October of this year. The average new home sales price in November was around $280,000 and much below the $325,000 average new home sales price in November 2008.

With seemingly more good news than bad news in this report, could a Seller’s market be around the corner? I think we’re still at least a couple of years from serious discussions about a Seller’s Market. But  who knows? Real Estate trends can move swiftly and deals of a lifetime will be made by those who take risks before the tide turns.  I think for now we should set our sites on a neutral real estate market. Most experts consider 6 months of inventory to be the balance between a Buyer’s Market and a Seller’s Market. If we are to believe that then that means there’s no middle ground – meaning no neutral market is attainable. That’s why some insiders consider 5 to 7 months of inventory to be a neutral playing field. If you agree, then the 6.8 months of inventory we currently have could indicate our entrance into a neutral real estate market. We’ll have to sustain that trend to prove it’s not just a fluke but if we are indeed heading into a neutral real estate market, that would be music to many Home Seller’s ears.

Posted by Jason A. Brown