There have been a lot of changes in the Kansas City Real Estate Market in the past 12 months. If you have thought about Buying or Selling a Home in the Kansas City Area you will be interested in this report. Today, Chris Goodale reviews the statistics and outlines how they impact you!
Jan 2017 Kansas City Real Estate Market Analysis
Whew! There’s a lot to cover here or should I say there’s not! Well it depends on where you stand in the market. If you’re a buyer, the scene may look a little bleak, but read on, there’s a glimmer of hope on the horizon. If you’ve been contemplating selling, you may have heard there hasn’t been a better time to sell in the Kansas City Real Estate Market in nearly a decade! But is it? Read on to determine if selling is in your best interest. I’ll cover the stats released in the latest market reports, what they mean to you as either a buyer, seller or both.
I’ll cover three examples of market participants. One that currently doesn’t own a home and looking to buy (Leasing or First Time Home Buyer), Move Up that will sell a home and purchase another, and someone selling but not purchasing (moving to assisted living or to a lease).
Buyers That Currently Don’t Own A Home
If you’re currently leasing or shopping for your first home in the Kansas City Real Estate Market, you’ve probably heard now is a good time to buy. Rates have ticked up a bit and are expected to continue slowly rising but are still good. If you have started looking, you already know finding the perfect house and perhaps one that fits your budget is where things get sticky in a hurry. That’s because the inventory levels are at unprecedented levels! The selection is not there. If there is a bright side to this, and that is the glimmer of hope you can hang onto if you choose, is that as we are approaching peak market season in the Spring, more houses will hit the market as Sellers gear up to make moves. With such a tight supply however, expect these houses to go for near market prices to potentially over bidding prices as buyers try to beat each other out at the opportunity for home ownership. Be cautious that you set a budget up front and stick to what you can afford. Many homeowners have made regretful purchases and later hated the feeling of being house poor. Set priorities for your lifestyle and decide what you want to spend towards housing, necessities, travel and leisure and choose to take fiscal control of your life so that you can make a decision stress free. Often overlooked when comparing the alternatives of owning vs leasing is the cost of maintenance, insurance, taxes and big ticket house repairs or mechanical failures. A one and five year plan with a budget can help you weed out the noise and allow you to choose a solution that works best for you.
Move Up Buyers That Will Also Be Selling
Move up buyers have been struggling with the fear of not having a home if they place their current home on the market and it sells before they can find a replacement. If you’re building or buying a new construction home in the Kansas City Real Estate Market this might not be a problem. If you’ve found what you like and it fits your budget; be sure you have secured the new home before listing the old or you could be forced to purchase something that isn’t on your “A” list or risk paying more than you would like. Inventory continues to be a problem for all homes, but existing homes is far more challenging. Sellers that plan to move up to another existing home need to plan and prepare well for the transition. This includes meeting with a Kansas City Real Estate Agent and mapping out a game plan. Get your home ready to sell. Take care of overlooked maintenance issues, paint touch ups, clutter, and any updates your agent may recommend to help the marketability of your home prior to looking for the new one. Have your budget and financial plan in place so you know exactly what homes will meet your criteria and begin your search. From here each person’s scenario is different. You may have the financial capacity to purchase a new home without selling yours first, if so great! This can ease your stress. For most, this isn’t the case, so talk with your agent about your options. One is make a contingent offer based on yours being under contract. There is a risk that sellers won’t accept a contingent offer, however if your home has been prepared for the market and can literally go on at a moment’s notice you are steps ahead of your competition. Your agent can include a cover letter covering the desirability and market readiness of your home as well as your positive financial ability; it can give sellers the confidence to seal the deal. The flip side of selling your home without a place to go is simply that, you could have nowhere to go, or you make a “have to” purchase you don’t really like just to make your new situation work. Interview agents and choose wisely, you need confidence that your agent has a plan that works for your situation.
Selling Your Home & No Plans to Buy
You could be moving to Rental Homes in the Kansas City Area, Assisted Living, or Other non-purchase housing arrangement. Welcome to Easy Street. Your biggest concern is probably going to be what to do with all your stuff if you’re moving to a smaller place. This IS a Sellers Market, and since you wont be buying, it can be a win win. While planning for your new space, selling or donating items you no longer need will be your first priority. Consult with a Kansas City Real Estate Agent about your homes market readiness and find out how to maximize its value. Be ready for the move when you list, because the market desperately needs your home! Buyers are poised and waiting to pay top market dollar for it. Make sure its priced right from the beginning; too high and stagnation and lack of interest can occur, too low and you leave money on the table. The best experience can come from an experienced agent that is an expert in a few niche communities rather than metro wide.
Where Does the Market Go From Here?
Rates are expected to gradually rise this year but still remain fantastic. The real story lies between inventory and affordability. If the supply doesn’t increase, upward pressure will remain on pricing until it clashes with the number of buyers able to afford the homes on the market. Whether it’s a good time to enter the market depends on your unique circumstances. What is right for someone else, might not be right for you & vice versa. With a thoughtful plan laid out, anchored in fiscal discipline, you can be confident of your choice for housing moving forward.
If you have any questions about buying or selling or to get a free, no obligation consultation customized for your situation Contact Us at Midwest Property Resources.