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    Market Update – January 2021

    Hey everybody. I’m Pam Kedish and welcome to Kedish Group’s market update for January 2021.

    Hi guys. I’m Suzanne Starkey. Today we’re going to talk about what’s been happening in the market last year, and then also what we’re forecasting for the year coming up. Lots of good things.

    Absolutely.

    Why don’t you go on ahead and kind of give me an overview of what you saw going on in the market last year. No?

    It flashed by too quickly.

    It did. It did. Well, we had a little bit going on last year.

    Yeah, a little bit. I’ve done a lot of homework, of course, leading up to today and really have a lot of information as far as what our statistical history is. Of course, in 2020, prior to that though, as well as what we can forecast a little bit for 2021. Here’s what we got.

    Of course, as most of you know, we’re in two markets. We’re in the Kansas City market, as well as part of the Lawrence board. Sometimes there is some information that kind of flows together, but I separated the Kansas City Heartland MLS information as well as the Lawrence information. If there was a property, maybe entered in both, it may mix a little bit, but for the most part, this is pretty much what everyone can expect.

    These are some exciting numbers given what we went through last year. Don’t you think?

    Oh, absolutely.

    I agree.

    I mean the world of the pandemic, of course, I remember back in March, there was a lot of “what’s going to happen?”

    Right.

    Everything forecasting before that was expecting us to be very busy.

    Right.

    Then when March happened, we were like, “Well, what are we going to expect?” Fortunately, we were very busy.

    Yes, we were. We were.

    Along with all the trends. Here’s what we have, a little bit of information for you. So far, what we are seeing, December 2019, we had 3,385 homes sold in the Kansas City metro area. In December of 2020, we had 4,120. That’s a difference of 735 structures. This is includes land as well, but this is structures, land, properties that were sold and moved around, so in a pandemic, in an election year, I mean, there was a lot that happened.

    That’s exciting.

    There’s memes everywhere about 2020, and it did not slow down the real estate market.

    Yes, it really didn’t.

    Going into 2020, this is kind of what we saw. In January of 2019, so two years ago now, we saw 2,220 structures and land, pieces of property change hands. In January of 2020, we had 2,407. It was busy. The whole year seemed to be busier.

    In 2020 alone, we had 47,062 pieces of property move in all of the Heartland MLS, I should say, so 47,062.

    July, this was what was interesting and a little different than previous years. July was our busiest month. It had 5,129 structures or late pieces of land.

    That’s a lot of real estate moving.

    That was a lot. It was the only month in all of 2020 with over 5,000 pieces of property sold. It was definitely a crazy time.

    I did notice, and we felt this in our team as well, there was a little bit of a lag to that busy market because typically we see March, April, May, June just being insane. In March-April kind of took a little bit of a hang on, what’s going on here with the world. But then I think everybody really realized that, hey, this is kind of our environment. This is what we’re in. We’ve got to take a little bit different approach, but the world’s not going to stop.

    I know being out showing more houses, I definitely, you saw people be a little bit hesitant. I think once we kind of figured out what the new routine was on how to properly show houses safely, which we still can do, and show and list houses safely for everybody, things then started to ramp back up and it felt … The nice part about it, it was just a nice, even steady busy for the rest of the year.

    Yeah, it did. It didn’t, oh gosh, we got to find a house now and then nothing. It was, okay, this is the new reality that we’re in and then we were just busy.

    Right.

    In comparison to the last several years, July is kind of the beginning of where it started to slow down a little bit. That did not take place in 2020.

    No. We were still busy even through the end of the year.

    Absolutely. That’s a little bit of what happened in 2020 in comparison to previous years. Just in 2021 alone, I looked that up too, in 2021 alone, so far at the time of recording, we have 1,319 homes in our Kansas City MLS that have already recorded a sold, 49 in our Lawrence market, so definitely strong numbers. I’m excited to see what the last half does too.

    I think 2021’s going to be really exciting.

    Well, yes. Of course, you know we mentor and coach a lot with a whole bunch of people that know a lot more than we do around the country.

    Absolutely.

    We’re talking about what to expect for 2021. Are we finally going to hit that market crash that people are expecting…

    What are you hearing from the people that you’re talking to around the country?

    Wear your seatbelt. It’s going to be busy again.

    Good deal.

    It is. This is a little bit of what we’re expecting for 2021. We’re anticipating … In fact, there were some stats that actually quoted, but our prices and our sales are all expected to increase again. I think I would have to go back and look exactly what it was, and there was different expectations and such, but sales are going to expected to increase between seven and eight percent.

    Wow.

    Prices, and I think this is a little bit, this is on a national scale and I think this is really relative to where you are, but they anticipated roughly a 5% increase in price. not sure I 100% agree with that because I just know that there’s areas of the city that appreciate way more than other areas. but that’s kind of what the anticipated expectation is.

    it’s very important and more so now than ever, partner yourself and align yourself with an agent and a team, of course, that can …

    Absolutely.

    You know what I mean? And going into, especially if you’re trying to purchase in a market that’s really aggressive and really busy, you need to be prepared. There’s things that you can do. You can take your once list and maybe sacrifice a little bit, expand your search a little bit, come in, come prepared. I know we’ve won multiple offers and doing stuff like having buyers already written through underwriting, and such like that.

    Absolutely. That makes a huge difference.

    Huge, huge difference. Just kind of prepare them of what the market’s going to do. When we want to help you get into a home, we’re not looking at it as you’re purchasing today.

    No.

    This is a equitable decision. This is going to affect basically what your net worth is. We want to make sure that you’re getting into something and you’re not going to regret buying it or have any of that buyer’s remorse. I bought in a too busy of an area. That definitely not the case. It’s always better in our opinion, in most cases I would say, to purchase, to own something versus to rent it, not always. If it’s not, we want to be honest and tell you that as well.

    Absolutely.

    But we want to make sure that we’re giving you all the information that we have and letting you make the best decision for it.

    Absolutely. I would say, I think one of the strengths of our team is the fact that we really work well with our clients to help them build a strategy and trying to navigate this market is what you need. You need to have a strategy of how are you going to do all this? I know that that’s one thing that our team sits down with each of our clients when we first get to meet with them and talk about what’s best for you guys.

    Absolutely. We always say, and I know many of our clients on here have heard us say it, we’re not looking just for this transaction. We’re looking for this transaction, multiple transactions you may have in the future, and then of course, your referrals of your family and friends, because we’re going to do an amazing job for you.

    Absolutely.

    By turn, we know that you’re going to not allow anyone you care about to use anyone else.

    Exactly. I know we’re looking forward to a great 2021 and taking care of lots of people to find their homes.

    Absolutely. If you guys have any questions out there at all about specifically what to expect in your area, give us a call. We’re always running these numbers and information for people, so we’re happy to do it. We’re happy to look at anything and have an in-depth conversation with you about it.

    Absolutely.

    All right. Have a great day.

    Thanks guys.

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