3rd Quarter Reports

3rd quarter reports for Kansas City reveal that home prices continue to be under stress.  While sales surged in April and May of this year due to the tax credit, July's 25% drop sent panic creating a gap in year over year sales that continued in August and September. 
 
Even bigger news is that the average price concession in Kansas City increased from 8.5% in July to 9.7% in September.  This figure accounts for the sales price to list price ratio as well as other concessions seller's make through the re-negotiation process of a contract.  In the month of October, the average sales price to list price ratio was 94.5% - almost identical to September while the number of sales in October was off 38% compared to last year.  The expansion of the ratio suggests that home prices may track downward this fall.
 
This market is a very difficult one for seller's to maneuver.  If you must sell your home in this market, you have three choices. First, you can hire a discounted broker who will list the home for a lower commission fee.  Little effort will be put into the presentation and marketing of the home and little effort or experience will be given throughout the negotiation and renegotiation process but you can save money on the commission.  The second choice, is that you can sell the home by owner and try to save the entire listing side (and sometimes the selling side) of the commission. A seller with time and fortitude can figure out what to do and hope that all the pieces fall together for a successful sale.  Lastly, you can seek a full commissioned broker like Group O'Dell.  We bring all the resources of top presentation and marketing, continued reporting and updates of market conditions and feedback, top negotiation skills and experience in knowing when and how to hold on to the bottom line, and transaction support so that all the details of bringing the buyer to the table with no surprises is handled for you.
 
Many of our clients often tell us, "that's great but I'm not going to be moving now".  Please remember, if someone you know has to sell their home, the greatest support you can give us is to have them interview us.  We will give the the straight scoop and prepare them for a successful sale.

November Market Update

National headlines last week...New home sales were up over 6% in September! In Kansas City, we actually experienced the opposite. In fact, Johnson County took the biggest hit with a -40% dip in new home sales compared to September of 2009. Other counties reported for September (compared to 2009) differences of -18% in Jackson County, -20% in Clay Co, -8% in Platte County and -2% in Cass County.

It appears one of the reasons for the lack of activity across the counties has to do with pricing. Johnson County also has the highest average price for a new home at $379,637 compared to $282,132 in Jackson, $295,875 in Clay, $266,541 in Platte and $283,120 in Cass Counties. New construction prices are indeed inching up ever so slightly with the exception of Jackson and Wyandotte counties whose prices are down -5% YTD compared to last year.

So where are the deals in this market?

As housing new starts dropped off significantly over the past 3 years in Kansas City, there just isn't a lot of new home inventory readily available for purchase. If you are interested in purchasing new construction, chances are you will have to contract with a builder to start from scratch, obtain your own financing for the project, and pay a premium for the finished product. This stands in stark contrast to a few years ago when spec homes were abundant in all stages and in every price range.

Meanwhile, sellers of resale inventory are experiencing an average of 6% discount off the list prices and if they are dealing with our Buyer's Agents, they are also conceding to thousands of dollars of other concessions on top of that.

With the onset of Winter, there are always people who will HAVE to sell their homes. Our experience shows us that only the serious buyers and sellers come out in the Winter which is why this season could be one of the best to capitalize on a real estate investment. When you factor in the cost of money at all time lows, it seems the perfect Winter storm is upon us for creating long-term wealth. Call us today if you'd like to prepare yourself to purchase over the next few months and get in on the chance of a lifetime.

Selling this season? Call us for a complete market analysis and home audit for equity protection and find out why the agent you hire can make all the difference.

Is The Recession Really Over?

I was enjoying my birthday in Boston at a real estate conference when the news broke… the NBER (National Bureau of Economic Research) declared the recession is over! Do you feel it? Does that change everything for you? Most people would agree and even our President had to acknowledge the public frustration with that finding as most Americans don’t feel the recession has ended for them.

Of course, one of the strongest indicators of the health of the economy is the housing market. The NBER said the recession ended in July 2010. Perhaps the positive indicators in the economy found by the NBER were a result from the increased home sales through May as a result of the tax breaks to buyers. Here is how Kansas City is stacking up since those tax breaks ended.

August followed suit with June and July in dismal home sales. Sales were down -27% in the metro area compared to August of 2009. Although average sales prices are a bit more firm than last year at just 2% stronger compared to August YTD figures, sellers are still feeling the pain of time on market and discounted prices. The average home was on the market 99 days before it sold and settled on nearly a 5% discount of their list price. These figures are almost exactly the same compared to August 2009.

It appears that the yo-yo effects to the general economy are resulting from shots of stimulus but sensibilities particularly in the midwest, are holding firm to what is the natural scale of economy based on supply and demand. The strongest segment of the market is with first time homebuyers. The 80 million strong demographic of Gen Y is moving into the marketplace outnumbering their boomer parents of 76 million. The $100K- $180K range was strongest with 558 sales (of the 1,920 total sales for August) and will continue to be for years to come.

The current incentives in the market are with foreclosures – particularly those homes that have gone back to the government through Fannie Mae. The government is giving favored status to owner occupied buyers over investors and offering no money down to get into the properties. You can check out the Kansas City inventory at www.homepath.com .

Of course, buyer representation is especially important when buying a foreclosure. Our buyer’s agents are especially skilled at protecting the interest of our buyer’s; offering their vast experience in the market, educating you every step of the way, and treating your money as if it were their own. Call us today if you’d like to start that education process. We’re standing by ready to serve you or anyone you know that is thinking about buying.

Is The Recession Really Over?

I was enjoying my birthday in Boston at a real estate conference when the news broke… the NBER (National Bureau of Economic Research) declared the recession is over! Do you feel it? Does that change everything for you? Most people would agree and even our President had to acknowledge the public frustration with that finding as most Americans don’t feel the recession has ended for them.

Of course, one of the strongest indicators of the health of the economy is the housing market. The NBER said the recession ended in July 2010. Perhaps the positive indicators in the economy found by the NBER were a result from the increased home sales through May as a result of the tax breaks to buyers. Here is how Kansas City is stacking up since those tax breaks ended.

August followed suit with June and July in dismal home sales. Sales were down -27% in the metro area compared to August of 2009. Although average sales prices are a bit more firm than last year at just 2% stronger compared to August YTD figures, sellers are still feeling the pain of time on market and discounted prices. The average home was on the market 99 days before it sold and settled on nearly a 5% discount of their list price. These figures are almost exactly the same compared to August 2009.

It appears that the yo-yo effects to the general economy are resulting from shots of stimulus but sensibilities particularly in the midwest, are holding firm to what is the natural scale of economy based on supply and demand. The strongest segment of the market is with first time homebuyers. The 80 million strong demographic of Gen Y is moving into the marketplace outnumbering their boomer parents of 76 million strong. The $100K- $180K range was strongest with 558 sales (of the 1,920 total sales for August) and will continue to be for years to come.

The current incentives in the market are with foreclosures – particularly those homes that have gone back to the government through Fannie Mae. The government is giving favored status to owner occupied buyers over investors and offering no money down to get into the properties. You can check out the Kansas City inventory at www.homepath.com .

Of course, buyer representation is especially important when buying a foreclosure. Our buyer’s agents (make that a link to our buyers agent page) are especially skilled at protecting the interest of our buyer’s; offering their vast experience in the market, educating you every step of the way, and treating your money as if it were their own. Call us today if you’d like to start that education process. We’re standing by ready to serve you or anyone you know that is thinking about buying.

Why we do it...

This business consumes our days, evenings, weekends and yes, even holidays. But there is an ancient saying that goes "to those who have been given much - much is expected." We certainly feel that we have been given much. Much ability, much encouragement, much resource, much blessing, much talent, much, much, much....

Selling real estate was a career choice but the way we do business is a deeply philosophical choice. Thankfully, someone told us very early on that the real way to grow a real estate business for the long-term, was to be committed to the relationships along the way.

It is only in building relationships with clients that it becomes important to give advice that will serve them well while allowing you to sleep at night. The business will always come as a result. It is in that process that the real reasons of why people buy and sell homes becomes important. The trials and triumphs of the average American family is what we are faced with everyday.

Being part of helping people get to the next phase of life with a smile on their face, is our privilege. But as it goes... there is always something to be learned from the guy who has already gone down the path before you. The real names in these stories have been changed but the facts remain true.