Pam and SuzAnne got together to talk about the real estate market numbers from July. Together they agreed that while July wasn’t as crazy as the springtime, it was definitely still busy and suggests that we are going to have a busy fall. The numbers definitely back up what they experienced.
In July 2020, we closed 4,816 units, in 2021 we closed 4,354. That’s 462 fewer closed units in 2021, which confirms Pam and SuzAnne’s feelings that the market has started to slow down, but its definitely still busy.
Another telling statistic is the average sales price. In 2020 the average sales price was $282,452, in 2021 that number went up over 10% to $311,945. A 10% increase in the average sales price within a year is huge, and doesn’t happen often. This change reflects the crazy state the market has been in this year. People waiting until next year to buy, should reconsider as it doesn’t look like this trend will stop any time soon.
Days on market is a statistic that really reflects what we’ve been experiencing this year. In 2020 the average house was on the market for 42 days, in 2021 it’s on the market for 18 days. We’ve definitely felt that shift. More often than not a home will go on the market and it will be under contract within a couple days. Furthermore, if a home receives multiple offers, it will take a couple days to go through the offers and accept one, at which point it will be counted as on the market for a couple days, even if they received offers on the 1st day.
There’s a couple other important things we want to point out. Specifically the inventory and supply in the market right now. In July 2020 we had 6,061 homes in inventory. Last year we were in a hurry to see homes, but that was more of a “Let’s plan on going out tomorrow or Wednesday to see a house” situation. 2021 has been a much different environment. Now we are like “When can you be there?” “We can meet you in an hour.” We have been in much more of a hurry to get clients to the homes they want to see. So it’s not surprising to see that in July 2021 we had 4,352 homes in inventory. That’s a 1,709 fewer homes available, which is a problem considering we have had more buyers trying to find homes this year.
The supply number is something we want to put extra attention on. The supply numbers confirm what we have been saying, July was busy, but not as busy as the springtime. In June 2021 we had 0.9 months supply of inventory. That means if no more homes were listed Kansas City, we would be out of homes to sell in less than a month. For reference, last month we mentioned that the typically supply is about 6 months supply. So in June ’21 we had 0.9 months, in July we had 1.1 months supply. So it’s still really busy, but we are slowing down compared to this spring.
This small increase is exactly what we’ve been needing for months. It is helping to provide slight relief to the buyers, and it’s giving us hope that this crazy market is not going to stay for long. The forecasts suggest we will see the supply number start slowing growing through the end of the year.
With the market starting to calm down, it’s still important to note that it’s much crazier than typical. We are having hard conversations with buyers so they know what to expect as they start their search. And seller’s have to understand they won’t be getting the exchange multiple offer bidding wars that we were seeing in the spring. Although overall this is good for everyone. Most seller’s have to turn around and buy a new home, so it ends up being good that the market is calmer and they have more time and options to find their next home. This means that seller’s don’t have to be as afraid to put their house on the market, which will hopefully help the supply continue to grow.
All of the forecasted market numbers we are seeing suggest we are going to have a really great fall in the Kansas City market. It will still be busy, but we will have more homes on the market. It’ll be a win-win for everyone. We are excited to see what will happen, but we think it’s going to be an excellent end to the year.
As always, these numbers and conversations are very broad. They are averages for the whole Kansas City real estate market, which is a huge area. Whether you’re serious about selling your home, or just curious, call us. We can give you the update on exactly what’s happening in your area, neighborhood, your home. We will help you know what your situation is and what to expect if you do list your home. Together we can determine what the best choice is for you and make that happen.