COVID-19 continues to be a very serious concern, but it did not have a profound effect on the Kansas City Real Estate Market. In all actuality, it only caused inventory to drop to an all-time low and created even more pent up buyer demand. The result . . . a delayed and CrAzIeR spring market than we’ve ever seen. If you’ve debated selling, now would be a great time to get top dollar for your home. It’s not a bad time to buy either. Low interest rates means you are still getting a lot of house for your money and your dollar is going further.
Perspective on the Statistics
To give you a little perspective, we currently have about 1.2 months of housing inventory in Kansas City…. A balanced market is 6 months. We also have 44.4% less inventory than we did this time last year. That’s a HUGE gap of missing inventory.
Many housing experts believe sellers are hesitant to sell their homes due to concerns over COVID-19. Locally, there is also the issue of a lack of options for sellers to move. Our inventory shortage is spread across almost every price range and area right now in Kansas City. Until sellers regain confidence we will continue to see constrained inventory though this active summer selling season.
Buyer Strategy
So what can you do as a buyer right now? It depends on your short term and long term goals. At the end of the day you need to make a decision based upon these goals, and only you can determine what those are. I’m happy to discuss what your goals are and help guide you towards the best direction.
If you are entering the market as a buyer this summer, be prepared to compete in multiple offer situations, and to up the ante. In order to secure a home in this competitive environment, offers are often quite a bit over the list price, and other terms are sweetened to the seller’s benefit. But if it’s the right house for you, it might be worth it.
Housing Trends Moving Forward
If there has been one thing this pandemic has changed in terms of housing (besides increased demand and lack of inventory), it’s what buyers are looking for. With people spending so much time at home, they are reevaluating what they need, which is a trend that may continue as the workforce continues to shift gears to allow more people to work remotely. There is an increased focus on a few areas many homes haven’t been offering much of the past decade or so, unless you’re looking in the luxury market…. the home office, a home gym, focus on outdoor living space (porches and pools), and multiple living spaces.
It will be interesting to see how Real Estate will continue to evolve to meet buyer demands in the coming years. Stay tuned for more insight as we move forward.
Questions about what’s happening in your neighborhood? Email me at Alex@MalferKC.com. I can send you a neighborhood report.