Kansas City Real Estate Thoughts... Kansas City home prices overall were down for the month of November, compared to November 2007. If you needed further proof that we're in a buyer's market, here you go. As reported by my Kansas City Regional Association of Realtors - with assistance provided by Heartland MLS - the average sales price ($325,559) of a new home in the Kansas City metropolitan area was 12% higher than a year ago. This was offset by a 12% drop in the average price ($136,140) of existing homes in the Kansas City metro area. Looking more in-depth at some of the numbers that led to those results, there were 162 new home sales in the month of November, which is a 62% decrease from a year ago. There were 1,356 existing home sales, which is a 22% decrease from a year ago. Combined sales were 1,518, which is down 30% from a year ago. New home inventory fell 29% while existing home inventory fell 8% compared to last year. Overall there was an inventory drop of 13% in the Kansas City metro area. Many sources consider more than 7 months of inventory to be a buyer's a market and I'd concur with that assessment - generally. Keep in mind that real estate is local and that can mean from one subdivision compared to the subdivision right next to it. When NOT speaking to a specific subdivison, I generally operate on the following assumptions:0 to 4 Months of Residential Inventory (absorption rate) = Seller's Market.5 to 6 Months of Residential Inventory (absorption rate) = Typical Market.7+ Months of Residential Inventory (absorption rate) = Buyer's Market.
With well more than 10 months of inventory on the market, we're indeed in a buyer's market. There are deals to be had all across the board and buyers sitting on the sideline should get ready to jump in. Whether you're interested in taking the plunge on a foreclosure or short sale home or you're interested in making a more conservative purchase on a move-in ready resale or newly constructed home, now would be an excellent time to sit down and discuss the options. Mortgage interest rates are as low as I may ever see them again in my lifetime. I understand that many buyers are worried that prices may dip further, but just like your financial adviser will tell you that you can't time the stock market, you also can't time the real estate market. Without a doubt, there will be buyer's very disappointed later that they didn't jump in when real estate prices were at there most affordable level in decades.
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