Analysis Of Overland Park Kansas Housing Inventory - New Homes Versus Resale Homes
Kansas City Real Estate Thoughts...
I thought it would be beneficial to analyze our current inventory of homes by comparing the number of resale homes against the number of new homes. I decided to narrow the area for analysis down to an area that would have a good mix of resale homes and new home communities. I considered Overland Park, Olathe, Leawood, Lenexa and Shawnee and ultimately decided to use Southern Overland Park in the following analysis. I am defining Southern Overland Park as the area of Overland Park that is south of the I-435 interstate loop. We'll first look at the number of new homes for sale compared to resale homes for sale. Of course we won't see the whole picture until we then compare that information against the average monthly sales we are seeing in each sector. This will then give us an idea of how many months of inventory we have in each sector. The following graph shows that there are fewer new homes than resale homes on the market. That is not a surprise but the fact that the number of new homes was that close to the resale number was somewhat surprising. 
We now need to calculate the number of monthly sales in each sector (resale & new) of Southern Overland Park. To do so, I took the total number of sales the past 12 months in each sector and divided that number by 12 months. I found that over the past year in Southern Overland Park, there was a monthly average of 30.5 New Homes Sold (closed) per month and an average of 102 Resale Homes Sold (closed) per month. I then divided those numbers into the available inventory in each sector, respectively, to determine the number of months of inventory:
So we find that Southern Overland Park has about a 4 month supply of resale homes and nearly a 10 month supply of new homes on the market. While the amount of new home inventory is no doubt high, it is actually lower than I expected to find. The four months of resale inventory also surprised me. Considering the market challenges we have been facing over the past year, the overall results were better than anticipated. We'll continue to track trends like this as we head into the spring market.
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