Kansas City Area Home Sales Statistics - July 2008

As reported from Heartland MLS, here is a summary of home sales statistics for July 2008, as compared to one year ago. Note, Jackson County is on the Missouri side of the state line; Johnson County on the Kansas side.

Jackson County

Pending contracts:         950 homes, down 1.55%

Average sales price:      down 9.83%

New listings:                  1728, down 15.58%

Inventory:                       7796 homes, down 9.21%

Johnson County

Pending contracts:          709 homes, down 21.16%

Average sales price:       down 8.11%

New listings:                   1117, down 14.71%

Inventory:                        4571, down 3.42%

That is way too much use of the word 'down'!  However, what these figures tell me is that potential sellers have decided not to list--feeling they won't get the price they want or that the heavy spring/summer buying market is over.  This will actually help bring a bit of balance to the market, as buyer who want/need to buy will have less to choose from.  The lower average sales price is discouraging, but I still think the housing prices elevated too fast over the past 4-5 years and this is a natural market correction.

If you would like detailed statistics on home prices in your area--closed sales or currrent listings,

email me:    mary.hutchison@prukc.com

Thank you for reading my blog, comments are welcome!

You Can't Always Get What You Want

...and you know the line that comes next, 'if you try sometimes, you get what you need'.  I've been thinking about the wisdom of that line often lately...as I try to explain to my 14 year old daughter why we don't fly off to Europe or make impulse purchases without questioning like many of her friends.

This has been a tough year for the real estate business...and I am speaking for myself and many other agents in my office.  Clients who were going to list their houses say 'no, we don't have to move, the market is too bad'.  Buyers seem eager to buy...until a possible job layoff cancels their plans.  Sellers price homes too high and wonder why the house won't sell.  There are agents who are still pulling in  six figures annuallly  on a regular basis--from what I see, it's those agents who have been selling homes for ten years or more, or, they deal with very wealthy clients.  When business is good, I can splurge a bit on shopping trips and save extra money for the  special vacation.  When it's not so good--and the cost of food and gas keeps going up while income drops--it's time to cut back even more.

I'll admit, I've always been a bit of a penny-pincher.  When everyone else wanted SUV's, I was wondering, why spend so much on a car with poor gas mileage?  While buying books on line is inexpensive--we've always used the library.   We always plan to cook a little more to have leftovers during the week, and when dining out, portions are usually large enough to take home the extra for a smaller meal.  I've always brown bagged my lunch, won't spend $70 a month to color my hair, insist on the younger sister wearing hand me downs when she can.  This thriftyness is not enough to pay for a trip to London or to buy my oldest a car when she turns 16.  But now I try to be even more creative in saving a few dollars here and there.  We share a clothesline in the back yard with our neighbors...if we  see a  movie, it's the $5 daytime show...we walk more and do not make unnecessary car trips...I coast a lot in my vehicle and I question almost every purchase, watching sales at the grocery store and stocking up to save.

Although I would love to have more money to travel, to spend on clothes, to decorate my house, I'm thankful for what I do have...and that's what I try to convey to my daughter.  She has food, clothes, she has great friends and a tight, loving family.  She's a wonderful kid, just experiencing the very normal jealousy that comes from seeing others who don't have to watch their spending quite as much. I'm thankful for my loyal customers, my husband's steady job, the health of my family and the support of our friends.  Some day I hope she will appreciate the sacrifices we've made to give her a good education, to know that  she can appreciate earning her own money to buy her own digital camera and cell phone,  how she didn't turn into a typical spoiled kid who gets the latest everything.  And as I wrap this up, guess who I sound like.....my parents!

Please note:  comments will be posted, but I cannot answer comments personally!  If you want specific real estate information on the Kansas City area or have questions, email me.  This blog will not allow me to answer you personally through the comments section.

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Light Rail in Kansas City -- FInally??

As I sit typing this blog entry, listening to U2 on the Ipod, I feel like echoing Bono's soaring screams...will Kansas City finally get light rail and take a few steps towards being a big league city??  And more importantly, will Kansas City GET IT RIGHT?

It's on the ballot on November 4th...and I predict it will pass.  A 3/8 cent sales tax for --gulp--25 years, I also predict it will the tax will be back on the ballot for renewal at that time!  Apparently 815 million will get us a 'starter' line of 14 miles, from north Kansas City to 63rd and Bruce R Watkins Drive.  That's if we can get the Feds to give us over half  the cost!

Honestly, I have mixed emotions about light rail...for this town.  I LOVE light rail in other cities, but somehow, I have a feeling it just won't get done right here--and surely will not come in on budget. There are so many instances of Kansas City residents voting in higher taxes for special projects that turned out to be mismanaged, over budget, not self supporting and not attract the business promised.  (Examples:  Science City at Union Station, 18th and Vine District, Zoo remodeling in the 90s, Kemper Arena improvements, Bartle Hall expansion, Liberty Memorial ).  It's hard for me to get down on these projects , as I am a big civic booster of Kansas City and supported all of these tax increases.  I want a thriving downtown, busy Science City, sold out Bartle Hall.  But all of these projects are losing  money...thus the non stop need for even more tax support.

A client was talking about how light rail would affect his purchase of a condo --which is located along the proposed light rail route.  I think it would increase the value--in other cities like Denver, New York, Portland -- a location's proximity to light rail is a huge plus--whether it's an apartment, home, hotel, condo, etc.  Even now in Kansas City, with gas prices going so high, resale homes that are located close to bus service (or within walking distance to schools, shopping, etc) promote that fact as a desirable positive of the location.  It would be very disruptive while building the stations, the route, but ulimately would be a positive.

So I will be positive about this ballot, will vote yes, will (try to) feel confident our city leaders can get this done right.  Years from now, if it's finally finished, I'll still be here in my Brookside home, knowing I can always walk and use the old fashioned bus service!

Know These Details Regarding the New Housing Bill

It's finally here....'something' to help the troubled housing market.  What's in it for you...or someone you know...a first time buyer or a veteran?  Read on for a brief explanation and the details to know.

Mortgage Renegotiation:

If you are having trouble meeting your monthly house payment, your lender MAY be willing to give you a better deal under this new bill--they are not required to do so.  The home must be your primary residence and you have to verify your income. Your monthly housing payment has to be at least 31% of your monthly household income. Your loan must have been made prior to 1/1/08. Your lender may refinance you into a new fixed rate 30 year loan for no more than 90% of what the property is currently worth. If you get the new loan, you cannot take out a home equity loan for at least five years after getting the new loan. You will have to pay a 1.5% fee each year on the balance of the loan. Once you sell, you have to give no less than 50% of any appreciation back to the government. IF you sell the home in less than five years, you will have to turn over more of the appreciation. This program begins Oct 1 and ends Sept 30, 2011.

First Time Buyers:

First time buyers, for a primary residence, can get a federal tax credit of $7500 or 10% of the purchase price, whichever amount is smaller. However, if your modified gross income is more than $75,000 or $150,000 if married and filing jointly, the credit phases out. Also, you do have to pay the credit back over the next 15 years when you pay your federal taxes.  This portion of the bill is retroactive to homes purchased after April 9, 2008 and expires July 1, 2009. Simply put, this is an interest free loan for first time buyers--still, it's something to help out.

Additional Deduction for Homeowners:

If you don't itemize your return, and take the standard homeowner deduction...you are now eligible for an additional federal deduction of $500, or $1000 if married and filing jointly.  You do need to report the property taxes paid on your form.  IF less than $500, or $1000 if filing jointly, the deduction is limited to the amount you paid in property taxes.

Veterans:

Mortgage lenders now must wait nine months (instead of 90 days) before beginning the foreclosure process on homes owned by vets returning from the military.  Also, banks must wait a year before raising interest rates on mortgages held by returning military personnel.

There's something in this bill for almost everyone...will it 'save' the housing market?  I don't think so. But it's 'something' to help those who need it.  What will get this housing market moving again is a better economy with more jobs, lower inflation on essentials and higher consumer confidence.

I'd like to hear your comments, email me at mary.hutchison@prukc.com