Hi there, everyone. Thanks so much for taking the time to check out our post today.
I’m going to focus on the residential outlook for 2018 and the specific items that continue to drive our seller’s market.
Wichita State University’s Barton School of Business researched and published a concise overview of our KC Metro market. This was through their Division of Real Estate.
Here are some takeaways from the report (Click to view the full 8 page report)
What drives buyers? Good area employment opportunities and mortgage interest rates and both of these support the buyers right now. Per their report, the employment growth in KC has outpaced the national rate over the last three years. Couple that with 30 year fixed mortgage rates remaining attractive and we have lots of buyers interested in the housing market.
The buyer’s, however, run into a tight squeeze as home sales growth continues to decrease year over year. This tight home inventory is the driving force behind that. New home construction continues to increase and the report predicts an increase of 2% or 6005 units in 2018. This is welcome news to be sure, but not nearly enough to neutralize this tight market.
To give you some perspective on how swift the market is right now, we are under 2 months of inventory in the KC Metro right now. This means that it would take less than 2 months to sell all homes currently active based on rate of sales. A neutral/balanced market would be at 6 months.
The WSU report has a wonderful graphic showing percentage of homes sold in the first 10 days. From 2011-2015, 26.8% of homes were sold within the first 10 days of being listed. In 2017, it was 46.9%. This illustrates the competition that our buyers are facing when trying to get under contract. This is particularly true of homes between 100K-250K per the report.
You can imagine what this does to home prices. According to the report, home prices are up 23.8% since 2013 and are at their fastest pace since 2001. The report predicts another 6.6% rise in prices in 2018.
If there is any additional info you need or questions we can help with, please don’t hesitate to contact us.
Terry Jackson | Domicile One Realty | www.DomicileOne.com | 913-488-5623