KANSAS CITY, MO. In the real estate market in the Kansas City, Missouri area, demand still far exceeds supply, but Tony Conant, President Kansas City Regional Association of Realtors, believes that the market is showing signs of a cold snap.
Conant anticipates this by explaining that the market is still very hot, but houses are now on the market for a few days, up from hours earlier in the year.
He also saw fewer bidders in new announcements. Perhaps this is a sign of buyer fatigue – when buyers are tired of fighting for new ads.
“There are some, as we mentioned earlier, who just got disenchanted with the process,” said Conant. “After you lose eight or ten [bids, you start to think]”Maybe now is not the right time.” I would tell you buyers that there are some who have been disappointed before, maybe take another look. “
He says the market will remain hot because the number of homes for sale is low and mortgage rates are also close to historic lows.
The first half of 2021 continued the trend started in 2020, when high demand and low stocks led to a jump in prices.
In the 39 counties of Kansas City that Conant represents, the median sale price of a single-family home in 2021 is $ 301,504. Looking at the same period in 2019, homes sold for an average of $ 247,418, up from $ 261,359 in 2020.
Homes are sold on average 25 days this year. About half as many as in 2020 and 2019.
Despite complaints about low inventory levels, there were more new listings in 2021 in the first seven months of the year than in 2020, and just 200 fewer than in 2019.
Conant says property seasonality appears to be returning. Sales usually decline as school starts, especially during the winter months.
“I’m willing to bet that it will take another two, three or five years until we see what we call a normal market. Where we have two and a half or three months of inventory, which now sounds absurd, because we haven’t seen anything like it for so long. This is what I consider to be a healthy market. I don’t think there is a quick fix, I don’t think there is a silver bullet that will do it, ”admitted Conant.
He advises home buyers to work with a realtor, resist the temptation to give up checks to speed up the bidding process and focus on saving money.