Pam and SuzAnne got together to talk about what the real estate market looked like in October. They went over the market statistics and compared them to last October. They also discussed preparing for the spring market that’s right around the corner.
Pam and SuzAnne agreed that October 2021 was very similar to October 2020, which was drastically different than previous Octobers. However, October 2021 was extremely different than this spring. We have definitely have calmed down from the spring, but the numbers are suggesting that next spring will be just as crazy as last spring.
We keep hearing it’s a seller’s market, but what does that mean? How are seller’s fairing out in this market? What do sale prices look like compared to previous years? Typically we can expect to see about a 3% appreciation in home value a year. This year the appreciation is over 10%.
In October 2020 the average sales price in the Kansas City market was $281,788. In October 2021 the average sales price is $310,479. That’s a 10.2% difference over a year. 10% is a huge change, it’s about 3 times higher than what we expect.
But even with the drastic increase in price, we still have tons of buyers looking for a home. The good news is, unlike this spring, we have inventory for the buyers now. In spring 2021 there wasn’t much inventory in the market, which made it crazy. The large pool of buyers were all fighting over the small inventory of homes, which meant lots of multiple offer situations and buyers making big sacrifices in an attempt to get their offer accepted.
But buyers have a much better chance now. The market is still definitely a sellers’ market, even more so than last year, but it’s not as drastic as it was in the spring.
In October 2020, the Kansas City markets inventory was 5,651. So that means there was 5,651 homes on the real estate market at that time. In October 2021, the inventory was 4,283. That’s down 24%, which is a huge loss. But another indicator we need to look at when looking at inventory is pending sales. Pending sales are kind of the forecast. It tells you how many homes are currently under contract and pending close. This tells us how many closings we can expect to see in the next 30, 60, or 90 days for now. The Pending Sales in October 2020 were 4,080, in October 2021 it was 4,089. There was only a 9 home difference between the years. This is a big sign that we can expect next spring to be just as busy as this spring was.
This means it’s time to start preparing. The spring real estate really starts in January, so if you are thinking about doing something in the spring, now is the perfect time to call us so we can start preparing now and we won’t miss the peak of the season.
However, if you are thinking about selling your home but want to wait until spring to see if you can get more money, don’t bother waiting. The market is still a seller’s market and you can still get that money now.
If you are even curious about the market and what your options and possibilities are call us. We would love to take you through the specifics of your situation so you understand all of your options and can make the best choice for your family. Don’t wait until March, call us now. The mortgage rates are really good right now, but they could go up at any time and there’s been a lot of affordability calculators saying that if rates go up even 1% that could make a difference of $30,000 or more in what you qualify for.
Real estate is such an individualized area, we can’t give a one size fits all answer. So call us and let us see how we can help you, and your friends and family.