sponsored post by Lauren Hruby and Scott DeVouton
2014 was the year of pretty good in the Kansas City area existing home market. It wasn’t bad, it wasn’t through the roof. It was another welcome year of moving upward, but there weren’t a lot of sellers selling. The big question in 2015 will be whether people will decide that this is the year to list.
Every year, we look forward to seeing the Kansas City Regional Association of Realtors’ annual market statistics. Once again, we soaked them up and have our quick take on what they might mean for you and your home.
Average Sale Price
The average sale price for existing homes was $176,765 in 2014, an even 5% increase from 2013. This follows the trend of home values bouncing back. 2013 saw an 8.2% increase, and 2012 saw a 7.3% increase. All indicators say that 2015 will stay on the same track.
Closed Sales and Pending Sales
An average of 2,446 homes closed per month in 2014, a decrease of just 0.2% from 2013. What’s interesting is that 2013 was up 8.7% from 2012, and 2012 was up 15.4% from 2011. There was an average of 2,429 pending sales of existing homes in 2014, which was about the same as 2013. Again, however, 2013 jumped 7% and 2012 jumped 14.5%. It looks like the market stopped to catch its breath in 2014.
Inventory
The inventory of existing homes for sale in 2014 dropped 9.7% to an average of 11,379. This follows a slight and steady decline in inventory since 2012. This was the biggest theme during industry conversations all year, low inventory.
Days on Market
Kansas City area existing homes stayed on the market an average of 77 days in 2014, almost 5% fewer than 2013. It appears to be a good trend, as 2013 dropped 13.8%, and 2012 dropped almost 7%. Fewer days on the market is a great sign.
Mortgage Rates and Job Market
The average interest rate for a 30-year mortgage is at 3.63%, which is very low. This is compared to 4.41% from last year at this time, which was also a low rate. The consensus is that rates will remain low in 2015. This combines with an optimistic job market to make buying a home a more serious option for a lot of people.
What Does It All Mean?
While the market is solidly back, we suspect many households are still recovering. Equity is rebuilding. Cash reserves for necessary repairs are replenishing. In 2014, many potential sellers were likely on the sideline, waiting for the right time to list. As a result, we saw low inventory.
The bright side is that buyers were decidedly in the game in 2014. With low supply, prices went up. With buyers still looking, time on the market went down.
The big question of 2015 is whether more sellers will decide to list. Is this the year? The market of buyers is here already and loan rates are low. This is certainly good news. Keep an eye on that inventory.
Now is also the time to get your ducks in a row, whether you will be listing or looking in 2015. It looks like competition will be tight. Sellers should take care of necessary repairs and decluttering now. Buyers should talk to a lender now. Talk to an agent, who can provide great value early in the process. Time spent now can really help life in the future.
Have a wonderful 2015, everyone.
Author’s Note – If you enjoy reading our Midtown KC Post articles, and might be buying or selling your own home, please contact us. We enjoy writing these, and love helping people.
Lauren Hruby Real Estate
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