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.
