What is the market really doing in Kansas City?
1. Interest rates are at an all-time low. This past week they were quoting 30-year mortgage rates below 4%. How incredible is that? To understand just what that means to a buyer today, think about this: A 1% increase in interest (i.e., to the upper 4s) reduces your buying power by approx 11%. Here are some examples of what would yield the same monthly payments:
2. Home inventory hasn’t been this low in at least 6 years. Maybe even longer than that, but that was all the further back my trending data would go. When the market crashed in Oct 2008, there were over 20,000 homes on the market in KC. Now there are about 14,000. This is important if you want to sell. Buyers are taking advantage of the lower interest rates so they are looking for homes! If yours is staged well and priced right, it will sell. Expect inventory to increase in the spring. It always does. So if you think you’re being strategic in waiting until April to put your house on the market, consider the advantages you have by acting sooner.
3. Prices are great! Don’t expect home prices to recover to where they were in 2005. What we have seen over the past three years is a market correction, meaning home prices were inflated and they are not likely to get back to those levels for many years. I do believe we will see some gains over the next couple years.
SO ASK YOURSELF THIS: Are you in the house you want to be in for the next 5 years? If not, there are so many factors on your side that it’s worth considering if now might be the time to make a move. I am always available to answer any questions about specific neighborhoods or scenarios that might help you make the right decision for your family!
* $200K home at today’s rates = $180K home after a 1% rate increase
* $350K home at today’s rates = $310K home after a 1% rate increase
* $500K home at today’s rates = $445K home after a 1% rate increase
Look how much more you can get for your money by taking advantage of today’s rates! And you might think low interest rates are only good news for buyers. Not! If you’re a seller, think about how many more people will be able to afford your home with a mortgage at these lower rates. Your buyer pool is bigger, which is good for sellers.2. Home inventory hasn’t been this low in at least 6 years. Maybe even longer than that, but that was all the further back my trending data would go. When the market crashed in Oct 2008, there were over 20,000 homes on the market in KC. Now there are about 14,000. This is important if you want to sell. Buyers are taking advantage of the lower interest rates so they are looking for homes! If yours is staged well and priced right, it will sell. Expect inventory to increase in the spring. It always does. So if you think you’re being strategic in waiting until April to put your house on the market, consider the advantages you have by acting sooner.
3. Prices are great! Don’t expect home prices to recover to where they were in 2005. What we have seen over the past three years is a market correction, meaning home prices were inflated and they are not likely to get back to those levels for many years. I do believe we will see some gains over the next couple years.
SO ASK YOURSELF THIS: Are you in the house you want to be in for the next 5 years? If not, there are so many factors on your side that it’s worth considering if now might be the time to make a move. I am always available to answer any questions about specific neighborhoods or scenarios that might help you make the right decision for your family!
.JPG)
Comments
Post a Comment