Kansas City Home Sales Statistics-May 2008

From the Heartland MLS, here are home sales statistics for May 2008, as compared to May 2007.

If you have comments or would like detailed information on your subdivision, email me.

Jackson County

Pending contracts:  down 16.92% 

Average sales price:  down 11.08% 

New listings:  down 15%

Inventory:  down 1.44%

Johnson County

Pending contracts:  down 17.13%

Average sales price:  down 3.93%

New listings: down 11.95%

Inventory:  down 1.37%

Commentary:  The overall  market is still soft, some specific areas are stronger than others.  With the decrease in new listings and inventory, this gives the market a chance to 'even out' and move towards a more balanced market for both buyers and sellers.  Some sellers are thinking they will wait until next year to sell--taking a wait and see attitude, hoping prices will start to rise. Personally, I am experiencing more buyers coming through open houses and buyers who are now just ready to buy after months of looking and thinking about the purchase. Also, interest rates have creeped up and will probably not be decreasing for some time. 

I also want to mention that in the past two weeks, I've talked to several people who are seriously thinking of moving out of the suburbs to be closer to their jobs in order to cut the commute and/or take the bus each day.  This time, more so than last year when gas prices started the long, steady climb, people seem to be actively taking steps to leave the car behind and walk, carpool, bus, cut out unnecessary trips and rethink every route.  I get the feeling this is a permanent change in behavior.  I know it is for me!

I would like to hear your comments...email me!

Commentary on HGTV's List of the 25 Biggest Real Estate Mistakes

Recently HGTV published a list of the 25 Biggest Real Estate Mistakes. Reading through the list, it was enlightening and thought-provoking.  I don't agree with everything on the list but there are a few mistakes that provoked thoughts to share on the blog. I want to know what you think. Email me!

#25.  Buying a House for the Decor

There is no doubt that staging works--and an updated, well decorated home will sell faster.  So many times a buyer will walk in and fall in love with the decor...then during the walk-through of the vacant house before closing, you can see some disappointment on the buyers' faces as they walk though the empty space.  It's not as striking without the furniture, curtains, decorator touches.  That's why I tell buyers:  look beyond the decor!  Is this the floorplan you like? How do you like the flow of the space? What about the location? On the flip side, showing a vacant house that meets all of the buyers' stated wants/needs can be a challenge--the buyer can say 'it just doesn't feel like the one'.  There is some truth to the 'feel' of the home, the karma, the vibe.  Be open minded, though, if it's not decorated but does have what you want--the decor can come later.

11.  Not Setting a Realistic Budget

One reason the mortgage market is a mess:  lenders qualify buyers for more than buyers are comfortable paying.  I preach this constantly -- go lower than what you qualify for because there will be monthly maintenece, utilities, insurance, taxes--the price of home ownership goes up, except for your payment (on a fixed rate loan).  Don't get caught up in buying a pricey home just because you qualify for it.

2.  Setting Too High a Price

The housing market is going through a correction.  Five years ago, prices were going up so fast the market went crazy (almost like oil prices now).  As prices fall with so much inventory and not enough buyers, sellers won't accept the fact that they can't get as much as they thought they could for their home.  Keep in mind all real estate is local and some markets are strong.  But the fact is, most sellers will not get as high a price as they would have two years ago.  Look at the comparables, hire a smart, honest agent and price your home accordingly.  It's very difficult to come down from an original price that was too high..the perception is that something is wrong with the house and the seller will be desperate to get rid of it.

1.  Failing to Showcase a Home

This is crucial...show your home in the best possible way.  Invest in some updates, staging, painting, landscaping--whatever it takes to have your house ready for the market.  De-personalize the house, realize it needs to be neutral for others to imagine themselves living there.  It will pay off in a better offer.

Click here to see the complete list of mistakes from HGTV.

I have received numerous comments on several of my recent entries, and I want to make sure I get back to you quickly if you have questions. I do check this blog regularly, but if you want a more immediate (or private) reponse, email me here.

Thanks again, and keep those comments and questions coming!

National Association of Realtors Comments on the Housing Market

It's not always bad news, friends!  Today the National Association of Realtors posted  a press release regarding national housing trends along with some predictions.  Remember, all real estate is local and as a seller/buyer, you need to be in tune with your particular area. Still, some highlights worth mentioning:

• Interest rates are steadily inching upwards. Predicting  a rate of 6.3% for a 30 year fixed loan by end of year.
• The affordability index is up.  More buyers are realising that now is the time to take advantage of the slower market that is pushing prices down.
• New home sales are still very slow.  The rising cost of construction materials--and the higher costs to transport them--keep this market slower than resale.

Consumer confidence has a lot to do with homebuying.  I remember the last presidential election year--buyers were skittish, sellers sensed uncertainty, and sales stalled somewhat.  This election year is different, with an uncertain economy and gas prices affecting everyone, everyday, in every way.  Still, it will probably cost you more to move next year than this year..in transportation costs, interest rates and home supplies/decor.  So hop  off the fence and buy or sell  now!

New York Times article--Writing A Letter with Your Offer

I am a big fan of the New York Times and scan the online edition daily. An article from May 31 is worth reading, I've included a link below.

This article offers a template for buyers who want to make a lowball offer on a house.  Rather than describe the buyers themselves, how much they love the home, what they plan to do with it, etc, this letter focuses on the buyer's market of today, citing national statistics and why the sellers should not be insulted by the offer--and implies they should be happy they have an offer.

Equal time is given to a response as well--there is a sample letter from the seller as a response to the buyer, citing how government backed loans are loosening up restrictions and how going up a little in price doesn't affect monthly payments that much. And, of course, out of all the houses for sale, this house is the one you want.

As an agent, I have suggested buyers write letters to accompany offers and have received letters from buyers with contracts on my listings.  These letters have a totally different approach, attuned to the market of today.  Any savvy negotiator, realtor or client, should take a few  moments to read them.

www.nytimes.com/2008/05/31/business/yourmoney/31money.html