As we head into the busy spring buying season for homes, here are the stats for February 2009--all figures compared to same time one year ago.

Jackson County:

Pending Contracts:                621  down 19.77%

Average Sales Price:             $108,081, down 11.5%

New Listings:                          1284, down almost 21%

Johnson County:

Pending Contracts:                480, down 25%

Average Sales Price:             $238,133, down 2.67%

New Listings:                          998, up 1%

Ample use of the word 'down' in these stats, but know this:  fewer listings means the market will balance out, as there is not that much new product coming on the market to choose from. However, history shows us that March through June is the busy buying season, so thisi is the time for buyers and seller activity.  First time buyers are jumping into the market with the lower interest rates and the promise of the $8000 tax refund.

For specific statistics on your neighborhood, email me with your  full address and zip code.  Comments on this blog are welcome, but I am unable to answer personally due to technical limitations.

Thanks for reading!

No matter what the market is like, up or down, there are some questions that are always the same:

Sellers--How long will it take to sell my home? 

Buyers-- How much do you think I can get off the asking price?

My job wouldn't be nearly as challenging if I always had the accurate and simple answer to those questions!

So, let's look at a few statements/predictions regarding  the real estate market  from the April 2009 issue of Money Magazine, including advice for buyers and sellers.

• If President Obama's stimulus plan works, home prices will bottom out this year.  If not--we'll be sitting out this slow market through 2011.
• Home values won't hit the peak pricing  of 2006 for another ten years.
• Kansas City area home prices should start to recover early next year.

How does this affect you if you are a buyer?  Depends on where you are buying in the Kansas City metro area. Generally, I feel the bottom of the market is here for those listings that have been languishing on the market for several months. They have to compete now with all the newer listings.  However, this is the 'spring market'--when most contracts are written.  You CAN get a good deal, even on a newer listing--be sure your agent is familiar with the area and knows the house isn't overpriced (many sellers think their house is priced correctly, when in fact it's overpriced for this current slow market).  Next week interest rates may hit below 5.0%--for those buyers with a 20% down payment and a credit score of 700+. Buy now if you can.  It will take a while for prices to recover--in the meantime you'll be building equity and reaping the tax benefits of home ownership.

And what if you are a seller?  Should you sell now?  Or wait it out?  That answer really depends on your unique situation.  Because we are in the spring market when most contracts are written, you have a good chance of getting lots of interest in your home now--especially if it's a home attractive to a first time buyer. Be sure it's updated, clean, has good curb appeal and is free of clutter. Be wary of comparing your home to what sold a year or two ago--when the economy was different.  If you are in a suburban market where there is lots of competition (Olathe, Lees Summit)--shop the competition in your subdivision and price your home a little lower. Make it look like a great value--you may get competing offers.  Know the positives and negatives of your home compared to the others.   Buyers now want to take advantage of the $8000 tax refund AND the low interest rates--those options may not be available a year from now.

Personally, I am experiencing a lot of activity right now in certain areas.  Many first time buyers are (cautiously) ready to buy now.  They know the tax refund and low rates are an unbeatable combination. Still, they want to feel they are getting 'a deal'--or at the very least a well maintained home that will appreciate in the next few years.  I hear a lot about downsizing these days--and not just from older folks who don't want the maintenance of a house.  I hear it from families and younger buyers who want to own but not break the bank doing so--with their investments shattered, they are planning to keep living expenses lower in the future, particularly in regards to utility and energy costs. Finally, sales are happening in those always strong areas of Brookside/Waldo and parts of Overland Park/Prairie Village. The trend of wanting to live closer to work, amenities,shopping,  bus lines and city life is still strong.

Sure the housing market is ...still on a downward trend...but like most situations, there's good news and bad news on both sides.  You have the power to decide which side is going to work for you!

Have comments on my blog?  Need information about your neighborhood?  Email me or visit my website, www.maryhutchison.org

It's been a trend over the past several years...parents with children in college purchase a home, rather than rent, for the duration of the college years.  This is a smart move, because home prices (generally) rise or at least stay stable  near college campuses.  Buy a home for your child, get a roommate or two, and in a few years you can actually make money off the sale!  Keeping in mind a few basic rules, real estate is always a good investment...now more so than ever, with lower prices and historically low interest rates.

Last week I toured a really cute home near UMKC--priced at only $125,000!  This two bedroom home features an attached garage, vaulted ceilings, hardwood floors, updated colors and decor, new copper plumbing and a newer HVC system.  It's a short bike or car trip to campus, the bus is always an option, and the home is a few blocks from  the Brookside shopping area. This house shows well and would be great for a college student/first time buyer.

Within the next two weeks I will list a house on Cherry near the UMKC campus.  This 3 bedroom home welcomes you with a relaxing front porch..inside you'll find hardwood floors, a full bath, large living room, dining room and eat in kitchen,  a deck in the backyard and a large master bedroom. The closets are larger too, for a  home in this area.  Once again, a great home close to campus for a student or first time buyer.

Remember the $8000 tax credit for first time homebuyers this year if the home is purchased before December 1!

Thanks for reading my blog.  Please email me directly if I can provide more information about these two homes.

Kansas City was home to one of real estate's most forward thinking developers, JC (Jesse Clyde) Nichols.  He developed commercial and residential properties in the Kansas City area, on both the Missouri and Kansas side of the state line.  His most well known achievement, the Country Club Plaza, was the nation's first shopping district built outside of a downtown area.  He called his method of development 'planning for permanence' -- and even in this depressed home market, many Nichols' subdivisions still hold up their value.

A 40 year comparison of average home prices in subdivisions that Nichols built show some interesting statistics.  For example, the average price of a home in Fairway, KS in 1970 was $25,600.  In 2008 it was $332,698.  Part of the genius of Nichols was  he would build small, medium and larger homes in the same subdivision--just a block or so away from each other.  This enabled different types of buyers with different incomes to live in the same subdivision--but all were restricted by covenants and the expectation that all homes would be well maintained.  Generally, his developments were conveniently located close to shopping areas, some within easy walking distance.  After all these years in real estate, I'm finally tackling a book about Mr Nichols to learn more about the man, his influences and his life.

The real point of this blog is to show a comparison of a few of Nichols' developments and how the prices have changed over the years. Note the 2008 average sales price and the percentage change from the previous year.

                                          1980              2000                 2007                    2008

Armour Hills                  67,900          159,892             237,255             223,304       -6%

Corinth Hills                 116,000         214,796             276,530              269,677       -2%

Fairway                           80,100          222,248             331,276             322,698       -3%

Prairie Village                54,400          134,901            195,512             199,125      +2%

Verona Gardens           130,500         217,667            267,606             269,775     +1%

Remember, all real estate is local.  Some subdivisions and cities hold their value better than others.  For an analysis of values in your neighborhood, email me with your address and subdivision name.

This week details on President Obama's Homeowner Affordability and Stability Plan will be released.  This is the program designed to help homeowners who are having trouble making payments prevent foreclosure and refinance their  loans.  Below is a brief summary describing the program:

Eligible borrowers who are current on their mortgage but can't refinance because of declining home values may be able to refinance into a 15 or 30 year fixed rate loan.  The loan must not exceed 105% of the current market value of the property.

The refinancing will not reduce the amount you owe on the mortgage.  The purpose of the Homewoner Affordability and Stability Plan is to help borrowers refinance into a more affordable fixed rate loan.  Reducing the interest rate should save the homeowner money by reducing the amount of interest owed.

Mortgage lenders will begin accepting applications after details are announced on March 4.  In the meantime, collect the information you will need to provide to your lender:  current pay stubs, most recent tax return, second mortgage information (f any), credit card balances and balances on any other loans, like student loans or car loans.

If you have two mortgages, this modification plan is only eligible for the first mortgage.

There are NO FEES to modify your loan under this plan.  Beware of any organization that attempts to charge a fee for housing counseling or loan modification, especially if they ask for a payment in advance.

To apply for this program, wait until after March 4 and contact your lender.  The lender will tell you if you are eligible.  Note that banks and housing counselors will be receiving a large amount of phone calls regarding this program, and it may take several weeks to get an answer or confirm eligibility.

Thank you for reading my blog.  Comments are welcome, email me anytime!