There is an interesting article in Time Magazine, posted today, titled "Reinventing the McMansion".  The story talks about how larger homes, in the 4000-6000 SF range, are languishing on the market with few interested buyers.  However, there are some intriguing new possible uses for these gigantic homes:  to house older children aging out of foster care or perhaps multi-generation families can share the space. 

The American Dream includes a home of your own--and during the real estate boom it was 'bigger and better'.  Families traded up to huge homes, newly built in the far flung suburbs, with soaring ceilings, a personal bathroom for everyone, separate 'media rooms' and large bedrooms with walk in closets. Is bigger really better?  I say no..and there is evidence that these McMansions are no longer desirable, even to those who can afford them.

There are practical reasons: large homes suck up a lot of energy, using more water, heating fuel and electricity.  Daily round trips to the office require more gas and time.  Even a trip to the grocery store or to 'the city' for a special event means more planning and time involving traffic hassles.  Families living in these large homes can often spend most of their time separated from each other--each child in his or her own little world tucked away in a bedroom, complete with personal TV and computer; Mom in the huge gourmet kitchen and Dad spending an hour on the highway to get home.  This lifestyle is alienating as well as expensive.

This recession has really brought home the fact that bigger is not always better in housing.  I have heard of many buyers who want to 'downsize'-- a 2000 SF home is plenty. They want lower utility bills and building maintenance.  And if the kids need to share a bathroom--well, they will adjust. Buyers want walkability in their neighborhoods--the ability to walk or bike to a restaurant or grocery store, to school or the park.  That's why homes in Brookside and Prairie Village will always be popular:  there's plenty of home styles and sizes to fit most any requirement, with schools and shopping within a short distance.  City amenities, too, are just a few miles away.  Sharing a smaller space can bring a family closer together--more interaction and sure, perhaps more arguments and compromising. 

If you have a smaller home, appreciate what you have and get creative with your current space to utilize it fully.  Buyers need to seriously think about the additional costs and change of lifestyle when considering a large home purchase.  There will always be more buyers for a smaller home than a McMansion.

Your comments are welcome...  email me or visit my website.  Thanks for reading my blog!

The National Association of Realtors is putting the pressure on our elected leaders to extend...and even expand..the $8000 tax credit/refund for first time buyers.  Currently the credit is due to expire on December 1, meaning the house sale has to be closed by November 30--which is the Monday after the long Thanksgiving weekend.  Buyers:  do NOT plan on closing that day!

Personally, just over one half of my sales so far this year have been first time buyers.  In 2008, it was well less than half.  So would those first timers have bought anyway this year, if the tax credit was not in place?  Some would have, sure, but most -- I don't think so.  I know the $8000 incentive pushed some fence sitters to sign at the X.  It's also interesting to note that the usual 'move up' market--meaning those persons buying their  second or third home--are not 'moving up' this year.  I've experienced that as well, as possible sellers feel they can't get what they want for thier house so they don't list it, or they list it but it doesn't sell, or they are upside down on their loan due to falling home values or--and I think this is a big reason--they are afraid of a layoff and don't want to risk a larger house payment.

Each of my first time buyers this year not only bought a house, but stimulated the economy in other ways along with it:  they bought furniture, appliances, lawn mowers, home decor; hired a handyman for various home fix up jobs; hired a mover, went out to eat, bought beer and pizza for the friends who helped with the move; you can see the domino effect here.  Perhaps best of all, these buyers realized their dream of home ownership much earlier than they once thought, and they are excited about becoming part of a neighborhood, taking pride in their home's appearance and creating a sense of community you don't have in an apartment rental.

These are the pros of the tax credit.  The cons of extending it?  The cost, of course.  It's going to cost almost twice the projected amount anyway--extending the credit and possibly expanding it will add more debt to all taxpayers.  But like the 'cash for clunkers' deal, the psycological effects of buying a new home can't be priced in dollars so easily.    Just about every buyer I talk with says 'we like to entertain, we like to have friends over'.  That' pride of ownership is worth more than $8K.

The current health care debate shadows everything else in Washington and the rest of the country right now...except unemployment benefits, which have to be extended every six weeks or so.  Don't count on the $8K tax refund extension.

One final word...if you are a first time buyer and you don't buy now--you'll probably regret it next year.  Chances are you won't get a better deal than you can now.

Thanks for reading my blog--comments welcome!  Email me or visit my website maryhutchison.org

A brief summary of home sales statistics for July, 2009, Kansas City area.  I've also included zip code 64113 and the Armour Hills subdivision.

Jackson County

Pending sales:  756, down from 972 one year ago.  11.65% down YTD.

Average sales price:  $137,086, up from $136,997 one year ago.

New listings are down 17.5% YTD,

Johnson County

Pending sales:  786, up from 712 one year ago.

Average sales price:  $243,639, down from $253,940 one year ago.

New listings up 2.8%, in July, down 13% YTD.

Zip code 64113 (the Brookside area)

23 homes sold in July, average list price $411,000*, average sales price $377,000*, with average days on market at 141.

Armour Hills subvision, 64113, Brookside

Three homes sold in July, average list price $224,000*, average sales price $203,000*, with average days on market at 97.

*all prices approximate

Commentary:  Johnson County homes weathering the slumping housing market much better than Jackson County.  The zip code 64113 stats are an average, with home prices ranging from $150K to over $1million.  To truly get a picture of 64113, you  to average sales within a 5 or 6 block area because of the wide difference in prices.  In Armour Hills, where prices generally run from $200K-$300K, the upper end of the market is difficult and the lower end is stronger--due to the affordability for first time home buyers.

Want statistics for your subdivision? Email me with your full address and I'll do the research!

Thanks for reading my blog.  Visit my website:  maryhutchison.org

The national media is blasting that home sales are up...compared to last year.  But what about prices?

Truilia is reporting that 25% of homes currently on the market have had at least one price cut. That's a national statistic. According to their stats,   Kansas City MO has experienced 25% increase in price reductions from June '09 to August '09.  CEO Pete Flint also remarked:  "The reality is, today's sellers need to price aggresively to avoid reductions.  Consumers are looking for value and when they find a good deal, they are taking advantage of market conditions'.  SO TRUE!

Sellers, here's the deal:  you can price to sell or you can price and 'wait and see' if someone bites at the over-reaching listing price.  This is the reality in today's market, but so many sellers don't want to hear it. LISTEN TO YOUR AGENT.  CHECK OUT THE HOMES NEAR YOU ON THE MARKET. ACT LIKE YOU ARE A BUYER. 

It always amazes me when I hear someone say "my neighbor/friend/father says I can get xxxx amount for this house and I'm not going to underprice it."  Is  your neighbor/friend/father working real estate every day of the week like an experienced, professional agent? No.  Does your agent want you to get the highest price possible for your house? Yes.  Who wants a quick sale? Agent and seller. And what is a quick sale today?  Within 30 days.  But buyers today are so different from the buyers of 4-6 years ago when the market was hot.  When a house would sell in two days. What's selling in two days now?  A house that is priced right, staged right, and appears to the buyer to be quite a deal! (w hy are foreclosures hot? Because of the pricing!)  I hear it all the time from every buyer:  I want a 'good deal'.  They know this is THE time to buy since it appears we are at the bottom of the market. Today's buyer will keep looking until they find that 'good deal'. And they will look at everything in their price range. As a buyer's agent, too, it's up to the Realtor to point out the 'good deal' to the buyer--and the homes that are overpriced for this market.

Sure, there is a lot of money at stake in a transaction. As a seller, you want the most from your sale. However, today's market favors the buyer.  And buyers know it.

It's frustrating for sellers and their listing agents to have a house sit on the market for months, knowing it would sell if it was priced right and shows well.  Sometimes it's the location that holds back a sale. Sometimes it's an abundance of inventory in a particular subdivision or area.  Most of the time today--it's  price that prevents the sale. (and i"m referring here to moderately priced homes, not the upper end high dollar market). There are buyers out there.  Take a look at your showings and the feedback, ask your agent--that will tell you what's holding back the sale.

Your comments are welcome! Email me or visit my website.