So, what's going on really?
There is so much conflicting information out there on any topic you mention. Real estate is no exception. I scroll down my social media feeds and see "where are the buyers?" or "multiple offers, sold in a day", often from agents from the same region.
A question that I hear regularly is if interest rates have scared buyers out of the market. Of course, buyers (and sellers, too) are mourning the loss of the REALLY low interest rates. However, these rates were lowered as a response to a Global Pandemic, and would not be economically sustainable for the long-term. Checking rates with local lenders, I am seeing rates between 5.375 (15 year) and 6.125% (30 year). There are some attractive Adjustable Rate Mortgages available as well. The purpose of this blog is not to discuss interest rates, but I would be happy to answer any questions that you may have. Feel free to contact me.
The last six offers that I have written with buyers, there have been competing offers. On my listings, multiple offers are being seen. Showing activity has returned to levels seen before 2020, and those were also strong years in the housing market.
Another question I received from a customer this morning was if they sold their home, could they afford to purchase a larger home. Of course, this is dependent on individual situation. Looking across the past ten years, especially the past two years, home appreciation has risen. This has hopefully resulted in an equity gain that could be used toward the purchase of a home that better fits their current lifestyle.
The third question that I have been asked, and occasionally told is that it is a buyer's market. A buyer's market is where there is standing inventory that would last more than six months. A seller's market would have less than six months of standing inventory. A balanced market would be six months of available standing inventory.
Today, Shawnee County has Shawnee County has 127 active listings, and Osage County has 27. New listings are normalizing to pre-pandemic levels, while we continue to see historically low inventory. It may seem that there are more homes available, and they are not selling, in part to seeing no standing inventory the past two years.
For those wondering about a "crash", "bubble burst" or "the bottom dropping out", I am going to pull nationwide date on remaining inventory at the end of 2007: 3.8-4 Million homes, and the end of 2022 there were 1-1.2 million homes. Homeowners are also sitting on trillions of dollars of home equity nationwide, and this is something that was missing in 2007.
To close, one thing is certain about real estate, no matter what the overall market is doing, people are going to always experience life changes that may prompt them to be a buyer and/or seller. Babies will be born. People will get married. Job opportunities will arise. Relocation for a different lifestyle will be considered. Unfortunately, less positive changes will occur as well. Often, these factors will prompt a change in real estate.
Why does the market data matter to you? If a life change is considered, you have more information for a decision-making process. If you have additional questions, I am happy to help. If you are reading this and don't live in Northeast Kansas, I will connect you with someone in your area to assist in answering your questions.