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How Does Coronavirus Affect the Real Estate Market

I wanted to take a moment to talk to you guys about what’s going on in the Kansas City real estate market and give you some information on how the coronavirus is affecting us and what it means to you and your family. I pulled some numbers this morning based on what currently went under contract as well as homes that have listed and are currently available for sale to give us some perspective. The dates I pulled this information was from Friday March 13, 2020 to Today March 17, 2020. It’s a very small window but it gives us perspective on how coronavirus is truly affecting the real estate market. And I’m a factual guy, I like to look at the facts, I like to look at the numbers because numbers don’t lie.

They tell a true story of what’s going on. So from Friday to today we had 632 homes that went under contract. So 632 families decided to go ahead and purchase a home. That’s great. Well, when we compare that same period into 2019 we only had 587 homes go under contract during that same period. So that’s a 7.5% increase. Great numbers overall, and it shows that the market is still moving. When we look at homes that are just listed, people that have decided, “You know what, I’m still going to go ahead. I’m still going to sell my home,” we had 593 homes come on the market from Friday through today. That’s down a little bit from last year, in 2019 we saw 673 homes that actually came on the market. So we’re down about 22% but what I want you guys to focus on and understand is that that’s actually the same trend that we’ve been seeing from January and February of this year.

That’s actually almost identical. When we look at the inventory in January of 2020 compared to January of 2019 we’re actually down 22.2%. Again, right in line with those same numbers. That shows that there’s less inventory to purchase. We’re looking at more of a sellers market. When we look at February’s numbers, our inventory is actually at 22.9% down from 2019. Again, less homes in the market, but that means that we’re still getting a higher price for homes. From 2019 to 2020, what does that mean? Well, that means that our sales prices are increasing and this is showing up in our numbers again. If we look at our median sales price in January, we went up 3.1% to a median sales price of $208,800 as compared to 2019 at $202,500. And then when we look at February we’re at a median sales price of $215,000 as compared to $195,000 in 2019, so we’re up 10%. So what does all this mean to you and your family?

It means that the real estate market is still healthy. Even in some of our recessions that we’ve seen in the past, in some of our financial crisis that we’ve seen in the past, the real estate market continued on. It may have been affected a little bit here and there, but homes are still being bought, homes are still being sold. People still need a place to live, people still need a place to go. It doesn’t change that. What we do for our clients is we analyze the market and we identify opportunities, but we also help our sellers and our buyers learn the market and we educate you and we help you understand what these numbers mean and how they affect your individual family. If you guys would like to learn more about how this market is affecting your individual situation, please reach out to us.

We’d love to share your home sits in this market, and whether or not it’s a good time to buy or sell. But from what I’m seeing on these numbers, yes to today is still a good time to buy. It’s still a good time to sell. Interest rates are historically low and we would love an opportunity to sit down and discuss with you what’s truly going on out there. We’re not going to use fear tactics, we’re not going to scary you, “You better do it now or you better not.” It’s all about what’s right for your family, and I think the numbers tell that story and give you an opportunity to make the best decision for you and your family. If you have any questions or would like more information, please reach out to us, we’d love to help you.

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