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Market Update – August 2022

Pam and Adam got together this week to discuss what the Real Estate market looked like this August and compared those numbers to August 2021. The news talks about the Real Estate market on a national level as a whole, but it shouldn’t. In fact, Pam says it is almost gross negligence to do so without a disclaimer that it varies so much from state to state, city to city, and even neighborhood to neighborhood.  The Real Estate market is not the same everywhere and Adam and Pam show individualized perspectives for Johnson County Kansas, Jackson County Missouri, and Clay County Missouri to prove just how much the market is not the same even in the KC metro area (see second graphic below).

Kansas City Real Estate Market Update – August 2022

So, let’s jump right in… The average sales price for Kansas City this August compared to August 2021 went up a little over $35,000 from $306,724 to $342,046. That’s 11.5% increase! So, if you bought a home last year in that area, chances are you’ve already built some equity. We usually expect a 3-4% increase in appreciation and that almost tripled for 2021-2022. 

Pending sales and closed sales are both down 14.5%. So, what does this mean? The pending sales have been down almost all year; except for February, so that is nothing new nor what we were not expecting.  This does not mean the market is “crashing” as we hear so many questions about.  It means there are not as many homes going under contract, that is it!  Remember, we are still not to that “balanced” market.  We still don’t have enough homes to sell; but buyers are opting to wait longer and not forcing their decision.  The inventory is low and that has not changed enough yet to be considered “balanced”.

Another big talking point is the interest rates.  Everyone everywhere is feeling the squeeze from the high rates and we get it.  However, as we have been reminding people, they are back to where they were anticipated pre-Covid.  We are not expecting them to be going lower.  So, if you’re waiting for that “crash” to buy… Well, unfortunately it is not on the radar.

 Appreciation is still expected, though it may slow a bit and not be at double digits. We are still expecting appreciation and rates are back to where they were pre-Covid and we do not anticipate seeing the 3%’s we were seeing.  Even if we did, REFINANCE.  It is still considered cheaper to buy today than to wait a year.  It is more expensive right now than it was last year.  For our sellers, our inventory is still low and buyers still need options.  Let us look at what your area specifically is doing and how the market would perceive your home.

If you are even curious about the market and what your options and possibilities are… call us! We would love to talk you through the specifics of your situation so you understand your position and can make the best educated decision.

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