The song remains the same...the housing market is slow, foreclosures are up, interest rates are low, now is the time to buy!!

But is it really the best time to buy...for you?

Think about these questions if you are a first time buyer...and then make a decision. 

1)  Is your job stable?  If rumors of layoffs are going through the grapevine, try to find out if your job is secure.  If you have doubts, trust your gut feeling.  Don't buy if you think your job is in jeopardy.

2)  Can you make a payment based on one income if you are married/living with a roommate?  Many homeowners purchase more house than they can reasonably afford.  A house payment is just part of the obligation--there are taxes, interest, and utilities as well.  Don't depend on more than one income (or a large percentage of your take home pay) to make the house payment.

3)  Figure out the true cost of home ownership first.  Yes, the interest deduction is a plus at tax time.  Along with the house comes maintenance, repairs, decor.  Think about the extra expenses that will come up and figure a percentage into your monthly budget dedicated to house upkeep.  

4) Are you planning to stay in the home for several years?  It takes time to build equity in a home.  If you plan on a job transfer in a couple of years to a different city, you may not be able to make money on the transaction when you sell.  It's best to live in the home at least four to five years before selling.

5)  What type of lifestyle do you enjoy?  If you travel often for your job, like to take extended vacations, dedicate yourself to long hours at the office, dislike yard work and home repairs--buying a house probably isn't for you.  (Of course you can still own--check out a condo!) 

Buying a house will cost more than renting...but the benefits of home ownership outweigh renting in many respects.  Still, it's never a good time to buy if your financial situation is unstable or the maintenance of a home doesn't fit with your lifestyle.  Take the time to do some math, talk to homeowners--then make the decision if buying is right for  you.

Thank you for reading my blog.  Comments are welcome!  If you  are thinking of buying or selling and would like additional information about the current market in the Kansas City area, email me.

Kansas City Area Home Sales Statistics June 2008

Here is a summary of Kansas City area home sales statistics, June 2008 as compared to June 2007--plus commentary!

Jackson County

Pending contracts: down just under 17%

Average sales price:  down 11.08%

New listings:  down 15%

Inventory:  down 1.44%

Johnson County

Pending contracts:  down 22.55%

Average sales price:  down 2.35%

New listings:  down 21.63%

Inventory:  down 1.96%

What's the upside to all of these down stats?  The market is continuing to correct itself after years of prices that were rising too fast. 

Fewer new listings means would be sellers are waiting--if they don't have to move, they won't.  They will wait until the market gets better--or improve the home they have.  Fewer sales shows us the tightening of the money supply (no more 100% financing for would-be first time buyers, which brings the domino effect to second time buyers who want to move up) and the hesitation from buyers to pull the trigger and write an offer--they want to see everything that's out there and wait for the best deal. 

Consumer confidence has a lot to do with buying and selling a house.  Everyone, except the very rich, is feeling the shock of high gas and food prices. Confidence is low and most everyone is pulling back.  Essentials first--and buying a new house--that can wait.  That's the bottom line reflected in these statistics.

If you would like sales statistics for your particular area or subdivision in the greater Kansas City area, send me an email at mary.hutchison@prukc.com

Thanks for reading my blog, comments welcome!

Yes, you can get a home loan!

Despite the daily doom and gloom news regarding the slow housing market, if you are thinking of buying a home, you can probably get a loan. Yes, that applies to first time buyers as well who may not have a down payment.

It's true that mortgage companies are tightening their underwriting guidelines and loans with non-verifiable income, plus the sub prime market (those buyers with credit scores under 600) are virtually gone.

But there is good news! It is an excellent time to be a buyer because of all the homes for sale right now--too much inventory gives you more negotiating power. Fixed interest rates are still low, just above 6%.

If you have a good credit score and income to support it--you can get a home loan. If your score needs some tweaking, dedicate yourself to improving your score over the next few months and plan to buy next year.

I specialize in working with first time buyers. If you are thinking of purchasing a home or condo and have questions, email me at

mary.hutchison@prukc.com I'm here to help.