Tag Archives: Prairie Village Real Estate

Getting A Home Under Contract Is Great But A Big Speed Bump Could Be Straight Ahead

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Checking The Pulse Of The Kansas City Real Estate Market

If you’re selling your home, it’s easy to get caught up in the euphoria once you get your home under contract. Same goes for home buyers. It’s understandable to feel a sense of accomplishment because you really have achieved a critical step in the real estate process. But while many sellers and buyers will already be envisioning the real estate closing, a real estate agent is focused on something much more pressing… the home inspections.

The inspection process can derail the process quicker than most people realize. That’s why we advise our sellers to hold off on the celebration until we’re through the 10 day inspection process. Our buyer’s agents advise our buyers to do the same. I’ve heard many agents over the years say they dread the inspection process because so many of their deals fall apart at that point. That surprises me because we very rarely have a deal fall apart at the inspection process. The process can be worked through methodically and a resolution achieved that is satisfactory to both buyer and seller.

The formula for success in getting through the inspection process will vary from transaction to transaction, but generally I find there’s 6 key components. The first is having a competent home inspector who is capable and willing to take the time to explain the defects put in their report. The second is having a reasonable buyer who understands that minor items can be fixed on their own. The third is having a good buyer’s agent who who will explain to the buyer that asking for trivial items could lead to winning the battle but losing the war. A buyer’s agent will also be a great resource to help a buyer locate professionals who can take care of minor issues after closing.

The fourth component is having a reasonable seller who understands a home inspector is going to look the home over with a critical eye that the buyer and buyer’s agent aren’t able to do and will uncover things that the seller had no idea was wrong with their home. The fifth competent is having a listing agent who explained to the seller that there WILL be items come up that have to be repaired. This needs explained to the seller BEFORE they sign the contract and go under contract. Otherwise the seller will now feel they are being beat down after the fact. A listing agent can also provide a seller with professionals who can handle repairs at a reasonable price.

The sixth component is having a home that’s in good condition. If the home is in terrible shape, the home inspection process could be very trying for everyone involved. Because even if a buyer limits their requested repairs to mechanical, structural, health and safety issues with the home, the list could get very long if the home is in poor condition and/or has had a lot of deferred maintenance over the years. But even those situations can be overcome in most cases and a satisfactory resolution achieved that keeps the transaction moving on towards the closing… which is what the buyer and seller really wanted when they went under contract.

Posted by Jason Brown

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Kansas Property Tax Collections Are Still Rising Despite Lower Property Values In Many Areas

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Checking The Pulse Of The Kansas City Real Estate Market

More than 1/3 of all property taxes collected in the state of Kansas come from property taxes. In 2010, property taxes accounted for 35% of the taxes collected overall by both state and local governments across Kansas. According to the KS Department of Revenue, taxes increased 94% between the late 1990’s to 2010. These taxes brought in $1.97 billion dollar in tax revenues in 1997 with that figure jumping to $3.8 billion in 2010. Check out the startling trend of rising property taxes compared to inflation rates.

Though the short-term trend in the chart shows more moderate property tax increases since 2008, the Kansas Association of Realtors is concerned that some sort of property tax reform will be required if we are to avoid a continuation of this troubling trend. Should we see a similar doubling of property taxes within the next decade or so, that trend would not benefit hopes for a housing rebound in the near future. It would certainly put more homeowner’s under water and the dream of homeownership out of reach for many more.


Posted by Jason Brown

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Data Indicates There Could Be 4 Million More Foreclosure Listings On The Way

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Checking The Pulse Of The Kansas City Real Estate Market

Property data on distressed properties across the U.S. has been compiled by The McClatchy Company and findings indicate it’s very possible there could be another 4 million distressed properties on the market in the next year or two. If true, that would double the supply of residential real estate on the market and thus double the months of inventory home sellers are up against with selling their homes. It will certainly have an effect on home values across the U.S. and our local real estate market in Kansas City, Johnson County KS, Overland Park and the surrounding areas won’t be immune.

Consider that The McClatchy Company’s analysis finds there’s about 3.5 million homes currently for sale in the U.S. There’s 600,000+ homes currently owned by lenders but NOT yet listed for sale. There’s 2.2 homeowners who are 90+ days late and who HAVE received either an initial foreclosure notice or notice of default. There’s 1.9 million homeowners who are 90+ days late but have NOT yet received a foreclosure notice or notice of default.

Add it all together and that’s how we arrive at the estimate that there could be another 4 million in distressed properties hitting the market in the next year or two. Until the volume of homes for sale, along with the shadow inventory (likely foreclosure listings that are not yet on the market) get in check, it’s likely that the real estate market will remain volatile for at least a year or more. That means a continuation of our current buyer’s real estate market. As long as interest rates remain low, we’re likely to look back in 5, 10, 20… 50 years and find that the next year or two were the best time ever to buy a home.


Posted by Jason Brown

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Kansas City Area Real Estate Market Stats: Comparing Our Current Market To 1 Year Ago

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Checking The Pulse Of The Kansas City Real Estate Market

In comparing September 2011’s market stats to September 2010, we find there’s fewer homes on the market and more homes are selling. This is great news for Kansas City homes sellers as we look to achieve a balanced real estate market not seen for several years in Kansas City. In September of 2010 there were 19,770 homes on the market, while this September that figure dropped to 17,550. In September 2010 there were 1,883 homes Sold (closed) while this September that figure improved to 2,105 homes Sold.


These figures calculate to an improvement from 10.5 months of inventory on the market last year to 8.3 months of inventory on the market this September. 5 to 7 months of inventory is considered to be a balanced real estate market, not necessarily favoring Kansas City home buyers or home sellers. Shaving off more than two months of inventory the past year goes a long way towards stabilizing home prices.

Once the glut of distressed foreclosure and short sale listings slows, the months of inventory could get back below the 7 month range. When this happens, we’ll likely be well on our way to a real estate recovery and home buyers will find it unlikely to find the great deals available in today’s market and with today’s 30-year fixed interest rates that are in the 3’s.


Posted by Jason Brown

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Conflicting Data: Falling Number Of Home Sales, Rising Median Home Sale Prices

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Checking The Pulse Of The Kansas City Real Estate Market

The Case-Schiller 20-city real estate index – which provides data on a sampling data on our national metro area real estate markets – shows that we’re nearing an all time low in the volume of home sales. It’s interesting that while home sales fell 1%, median sales prices rose an astounding 5.8% during the same period. Despite that rise in sales prices, the decline in the volume of home sales overall has the 20-city index nearing its lowest point since November 2009. Note how this graph shows us back at 2003 levels.


It’s noteworthy that the last several years shows the real estate market has been relatively stable. The  Case-Schiller 20-city index tells us that 80% of the cities experiencing monthly increases in sales prices but annually 19 of the 20 cities experienced lower sales prices.  Home sales overall are nearing their lowest point ever and if that trend continues it’s unlikely average home sales prices will continue to buck the trend.


Posted by Jason Brown

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Most Believe A Real Estate Market Recovery Is At Least A Couple Of Years Away

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Checking The Pulse Of The Kansas City Real Estate Market

A collaborative report by Trulia.com and RealtyTrac.com finds that 54% of a random 2,000+ people surveyed believe the soonest the housing market will recover is 2014. Perception is reality and for more than half of the people surveyed to believe that, we’re in for a long road ahead. Just six months ago a similar poll found 34% of respondents believed the soonest the housing market would recover would be in 2014. To find that 20% more people feel this way just six months later won’t come as a surprise to many home sellers out there and the path to a successful home sale is clearly ever-changing.

Just 18% of those polled felt the real estate market would improve in 2012 or sooner. It’s possible that things can change that quickly. Truly though, I believe NO ONE can predict just how fast things may improve. Once enough home buyers start jumping back into the market (in anticipation we’re on our way up), it’s anyone’s guess how much affect that will have on home prices.  It could depend whether foreclosures are rising or falling when we get to that point and, again, NO ONE can predict the timing of that either.


Posted by Jason Brown

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A Year Of Real Estate Market Stats Covering the Entire Kansas City Metro Area

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Checking The Pulse Of The Kansas City Real Estate Market

Here’s a look at the real estate stats for the entire Kansas City metro MLS area. This includes  Johnson County Kansas, Overland Park, Olathe, Leawood, Lenexa, Shawnee, Prairie Village, Lee’s Summit, Independence, Blue Springs, Grandview, Liberty, KCK and every listing in between that reports to the MLS. The graph below is a look at the past 14 months of real estate activity. You’ll see in the light green area that there was a significant dip in the volume of homes on the market in January and February. Since that time, the spring real estate market has brought the typical jump in the number of Kansas City homes for sale. But we’re still below the volume of homes that were on the market this time last year and that’s a good sign.

We won’t compare April’s sales rate to last April’s because you can see last year’s stats were grossly inflated by the home buyer tax credit that was still in effect. Looking at just the past few months, sales in both March and April (individually) were better than and other month since the tax credit ended (with the exception of July last year).

Posted by Jason A. Brown

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Prairie Village Kansas Real Estate Update – May 2011

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Checking The Pulse Of The Kansas City Real Estate Market
Real Estate Info for The City of Prairie Village
Recent 15 Days of Prairie Village KS Market Activity

After calculating the absorption rate over the past 15 days in Prairie Village Kansas, we find the city has 5.2 months of inventory currently on the market. This is excellent in our current market and represents a stable amount of inventory in the Prairie Village KS area. The days on market (DOM) for Prairie Village is outpacing the length of time it’s taking to sell homes in most other Kansas City metropolitan areas. Both the homes that sold and those that went under contract the past 15 days did so in less than 4 months time.

Type

#

Average $

Avg DOM

Listings Past 15 Days

 34 $224,475

–

Total Active Listings

 175

–

–

Newest Contracts Written

 15 $185,093 89

Newest Sold (Closed)

 17 $256,168 118

* The Average $ of Newest Contracts considers the price the homes were listed at when they went under contract. Data pulled from Heartland MLS and deemed reliable but not guaranteed. Low samplings in any category can skew results. Stats may not be an exact 15 days from date of this post. DOM = Days On Market.

Sales prices on the closed homes the past 15 days looks solid, with the average home selling for $256,168. The average list the price during this time was $224,475 and provides Prairie Village home buyers with lots of new options to consider. If your real estate goals involve buying or selling a home in Prairie Village Kansas, please contact me for assistance. We look forward to learning about your goals and helping you buy or sell a Prairie Village area home. 

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Posted by Jason A. Brown

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National Home Prices Take Huge Dip Back To 2002 Levels

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Checking The Pulse Of The Kansas City Real Estate Market

The U.S. accused Saddam Hussein of developing chemical, biological and nuclear weapons. An arrest was made in the D.C. sniper gun attacks. Enron happened. That was a long time ago… 9 years to be exact. And the value of the average U.S. home today is now equivalent to the average home price at the time of those events, according to the S&P/Case-Shiller price index. The downward trend is likely to continue until the volume of new foreclosure listings slows. Nearly 40% of U.S. homes sold last month were foreclosures or Short Sales (upside down homeowners praying their lender will accept a payoff lower than the borrower’s loan amount).


The conditions present today make it tough for many typical home sellers to catch a break. Some sellers become nervous when their homes don’t sell quickly. Many will make a knee-jerk reaction to drastically lower their prices as they work to gain market acceptance. This erodes values of surrounding homes and becomes a vicious cycle in some cases. To break the cycle, I believe we’re going to need an extended run of positive economic news (should create more buyer demand in the market) and a sizable reduction in the volume of foreclosure listings hitting the market (less supply of distressed homes will increase the demand for typical resale homes).

Some people predict we’ll never again see the real estate appreciation rates we saw for years in our country. While that may be true, to say that the housing market isn’t going to rebound would be bucking history.  Real estate has always rebounded and the pride of homeownership is one of the things that makes our country great. I am amazed when I hear the occasional person say that it’s crazy to own a home. I always tell them, someone is going to own the home they live in. Would they rather it be a landlord making the decisions for them the rest of their lives? I’ve yet to hear a plausible response to the question.  Real estate is also a LOCAL phenomena and the numbers reported nationally are drug down drastically by the real estate bubbles that burst in portions of California, Florida, Colorado and Arizona.


Posted by Jason A. Brown

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Kansas City Mortgage Interest Rates Fall For Third Straight Week

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Checking The Pulse Of The Kansas City Real Estate Market

Mortgage rates were inching higher around the new year but we’ve seen them in a downward trend recently and have actually seen rates drop for a third consecutive week. This is an amazing benefit to buying in today’s real estate market and it’s likely 20 years from now we’ll look back in amazement on the interests rates some of us were able to secure. If you’re considering buying a home, the average national 30-year fixed interest is hovering around 4.75%. Most experts believe interest rates will hold steady for at least the next few weeks.

This week I’ve received notifications from Bank of America advertising 30-year fixed rates at 4.625% and from Wells Fargo advertising 4.875%. Mortgage rates with most lenders change daily and some even update their quoted rates twice a day. So take any interest rate quote you see with a grain of salt because they probably will have changed – possibly up or down – by the time you contact the lender. When buying a home, contact your lender and lock in your rate. If you have a contract, you can lock in the current interest rate for free. If you’re just starting the Kansas City home buying process, you can often pay around $150 to lock in the current interest rate for 60 days. Once you’ve locked in your interest rate, it doesn’t matter if interest goes up during the lock period, because your rate is guaranteed.

Posted by Jason A. Brown

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