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Market Update – July 2022

Pam and SuzAnne got together this week to discuss what the real estate market looked like in July and compared those numbers to July 2021. They also looked at the Multiple Listing Service 2022 Statistics for Johnson County Kansas and compared those numbers to show an individualized perspective.

Closed sales for July 2021, we had 4,463. Now in comparison to July of 2022 we had 3,909. So we are down 12.4% year to year. So you may ask, when this number continues to move downward is that a bad thing? No, and as we’ve seen all year that has been a trend.

The average sales price this year compared to 2021 went up a little over $35,000 from $311,496 to $347,194. That’s 11.5% increase! So, if you bought a home last year, you’ve already built some equity. We usually expect a 3-4% increase in appreciation and that has almost tripled. What makes this interesting is that we are down from month to month. In June 2022, the average sales price was $357,395. During this time of year though that can be normal because of seasonal changes.

While it still feels like homes are only on the market for a day or less, on average, houses are on market for 18 days. This shows the balance between homes that fly off the market versus a few houses that can be on the market for 30, 60, or 90 days.

Our inventory, as we’ve continued to see throughout 2022, has crept up a little bit more. For July 2022, the inventory was up 2.9% from July 2021. Which is great! We are still below where we need to be for a balanced market but still headed in the right direction. Supply is at 1.5 months for July 2022 which is up 7.1% from July 2021 at 1.4 months.

Our pending sales for July 2021 were 4,419 as compared to 3,717 in July 2022. So, how do these numbers compare to Johnson County, Kansas? The closed sales for July 2021 were 1,240 while in July 2022 we had 1,028. That is a 17% decrease from year to year. We were down 23% in July pending sales from 1,178 in July 2021 to 904 in July 2022. That’s a big difference. We try to forecast the market to help educate our clients and watching pending sales is a good indicator of what to expect in closed sales.

For buyers these numbers translate into good news.  Buyers, especially our under $300K group are seeing themselves as now having a real shot at purchasing a home without having to make an offer for 5-10% over the asking price, waiving inspections, and giving up every contingency under the sun.   Buyers are sighing a breath of relief and not feeling like they are in an endless rat race going nowhere anymore; but rather truly enjoying the experience of home shopping as it should be.

Sellers do not worry, we are not seeing prices take a nose dive and you’re still expected to get a fair market value for your home.  The media likes to sell prices are dropping; however the numbers reflect differently.  Our average sales price is still up year over year.  We are just not expected to see the crazy appreciation, 10+% that we had been seeing.  We are expected to get back to a more balanced 3-5% appreciation which will be greatly appreciated when a seller goes to buy that next home after selling their current one.

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