It’s Not Just You – Johnson County’s Real Estate Market Is Crazy Right Now

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Forget vaccines, the real competition this spring is Johnson County real estate.

What’s happening: A combination of factors – from low interest rates to the consequences of the COVID-19 pandemic – leveled off to reduce inventories and raise prices to historic levels.

In the first quarter of 2021, homes in the Johnson County market at average, sold for $ 412,000.

The median selling price in the first quarter was $ 350,000, up nearly 13% over the same period last year and 75% over the past decade.

Of course, this phenomenon is not unique to Johnson County. KCTV reporter Nathan Vickers expressed the general sentiment by retweeting this popular TikTok:

Unprecedented: Experienced realtors in the Kansas City area say they can’t remember a market with such competition.

“Inventories are so low, but we’re actually on track to sell more homes than ever before,” said Tony Conant, president of the Kansas City Regional Association of Realtors. “What we have in the market just gets absorbed so quickly.”

This is reflected in the graph from KCRAR. The number of homes for sale has decreased by 64% compared to last year. At the same time, the number of closed sales in general increased.

Through the Kansas City Regional Association of Realtors website.

Sellers market: As a result, buyers like Ashlynn Waterman and Jared Urquhart resort to exceptional tactics to try and get the home they want.

The young couple moved to the Kansas City area from New Mexico last year and began searching their home last fall.

They made five unsuccessful bids for other homes in recent weeks before finally locking up a house in Prairie Village near Belinder Elementary School.

“We found out that we would have to go all-in, and we were afraid that we would have to pay less than Prairie Village,” said Waterman.

What is needed for this: Their realtor Lindsay Pryor told them to be ready to make an offer upon request.

She advised looking for homes that are $ 50,000 below their budget so that they have room to offer much more than the quoted price.

Pryor also told them to be prepared to take the unusual step of giving up evaluations and inspections, essentially buying the house as it is.

“I mean, normally I would never recommend it,” Pryor said. “But when we didn’t do it in this market, they didn’t get home.”

In the end, after all this and agreeing to give sellers some flexibility on the date of the move, Waterman and Urquhart did receive an offer and plan to move soon.

“We are moving to start a family and have been looking for several months,” she said. “It was stressful at times, but now I feel great.”

The big picture: Johnson County is the densest and most expensive housing market in the Kansas City subway, according to KCRAR and Johnson County United Community Services.

Stocks are lower here than in other districts in the region on both sides of the state border, and this contributes to higher overall prices.

The chart below from UCS shows Johnson County outperforms all other metro counties in average monthly home values ​​of just over $ 1,200 per month.

Image courtesy of Johnson County Community Services.

Accessibility issues: This has led policymakers to worry that the current housing bubble could make life here miserable for some people in the long run.

Overland Park City Councilor Logan Heli recently and his partner closed a townhouse near the center of Overland Park.

This happened after they made 13 unsuccessful offers, mostly for single-family homes.

“We are very lucky,” he said. “But in this market we faced great difficulties. I would like to think about this area [on the council] and, having grown here, the first houses for young people will appear. I’m afraid these options are few. “

Overland Park City Councilor Logan Heli at his new city home. Photo courtesy of Kyle Palmer.

There is no place: Low inventory affects the entire spectrum of housing, Heli said, as evidenced by a recent study of the UCS housing stock.

Due to the limited market, older homeowners stay longer in their homes because they are concerned that they will not be able to find an affordable alternative after selling their property, leaving fewer opportunities for young buyers like him to enter the market, Heli said.

At the same time, it remains lack of affordable options for low-income families, purchase or rent.

“It just underscores that housing affordability in Johnson County is a major issue that our community must face,” he said.

Consequences of the pandemic: In agreement with the Kansas City Regional Association of Realtors, some of the current market conditions may disappear as the world rebuilds in the wake of the COVID-19 pandemic.

He suggested that health problems and fears about the spread of the disease made some sellers nervous, leading to a decline in the number of homes on the market.

At the same time, buyers are eager to find their dream home as they are accustomed to living and working from home.

“We see a lot of people who need more square space, such as home gyms, home offices, swimming pools,” said Conant. “We don’t know how long [the pandemic] will continue, so people want their homes to be in better condition. “



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