KC Condo Tracker

KC's Real Estate Market is En Feugo!

May 13th, 2015 10:09 AM by AJ Gentry

You read that correctly. The Real Estate Market in Kansas City is ON FIRE! With a lower than normal inventory of homes on the market for sale, competition is heating up. If you are currently shopping for a home in the metro area, you need to be prepared.

What does preparation look like, in this market?

  • Having a Buyer's Agent represent you in your side of the transaction is VITAL. Listing agents work for the seller, they cannot legally represent you as their client also. To do so would mean they would need to serve you as a TRANSACTION BROKER, and that will not help you in negotiations. So NEVER call the number on the sign in the yard - you should consult your Buyer's Agent for any and all questions. If you Buyer's Agent is not available when you need him / her, you are working with the wrong Buyer's Agent. It's imperative in this market that you have an attentive and professional Buyer's Agent who is familiar with the area in which you are shopping. For example, using a Buyer's Agent who sells 95% of their properties in Overland Park is not beneficial for you if you are buying a River Market Condo.
  • Have your pre-approval letter in your hand and ready to go. That means as soon as you are ready to shop, you should know how much you are approved to spend. The best homes at the best prices are selling the day they hit the market. And sometimes, there are multiple people putting in offers on homes at the same time. The ones who don't have all of their documentation together are the ones who won't win in a  bidding war. It's a sad but true fact in this market. For a list of lenders, check out our website.
  • Be prepared to NOT get everything you want. It's a sellers market and there are more people wanting the same house you want. That means negotiations are extremely challenging. Again, it's important to have a Buyer's Agent who can present you a full picture of the situation and help you understand the pros and cons of the home and the negotiation process. A great Buyer's Agent will make sure you don't lose a home to another buyer over something that is trivial in the grand scheme of the home buying process.

KCRAR / Heartland MLS prepares information each month that shows current market conditions and here is the most recent snapshot:

  • April 2015 average sales price for new & existing homes combined ($197,737) is 4.5 percent higher than April 2014.
  • There were 3,084 homes sales (new & existing combined) for April 2015  - 12.4 percent higher than April 2014.
  • Home inventory (new & existing combined) for April 2015 (12,374) is 6.9 percent lower compared to April 2014.
  • The supply of new and existing homes for April 2015 is 4.5 months - representing a home market slightly favoring sellers. 
Posted by AJ Gentry on May 13th, 2015 10:09 AM

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