By Chad Taylor
Question: It is half way through the year, where is the market headed?
“Crystal ball” questions are a little tricky, but I felt it was time for a more specific market update.
Our MLS is divided up into several different zones. There is not a lot of rhyme or reason involved in the boundaries of these zones, but for the purposes of this column we will talk about zones 310 and 320. In Prairie Village, zone 310 includes all of PV north of 75th Street. Zone 320 includes all of PV south of 75th Street.
In zone 310 (north of 75th), we are down to 2.6 months of inventory. That is a 29.2 percent drop compared to this time last year, and is the lowest I have seen since before the peak of the market in 2006. The average days on market is 63 compared to 72 days this time last year. Finally, the median price for sold homes is up 9.1 percent. After seven long years, it is great to see values improving. As you can tell, all of these statistics are positive. Really positive actually.
The most popular price range (17 percent of the market) in zone 310 is $140,000- $160,000. That is not surprising to us due to the fact that we are working with a lot of first time home buyers this year. As rates continue to slowly increase, we are seeing more and more of them eager to purchase before their buying power is affected. In some cases, as rates go up it may make more sense for a buyer to purchase now rather than waiting to save up a more substantial down payment. Interest rates will have the largest impact on that buyer’s mortgage payment.
In zone 320 (south of 75th), the inventory is down to 2.4 months. That is a 12.5 percent drop from this time last year. The average days on market is 46 compared to 84 days this time last year (a 45.2 percent drop.) The median price for sold homes in this zone is up 2.3 percent. So homes are selling quickly and for improved sales prices. You gotta like that!
The most popular price range (17.96 percent of the market) in zone 320 is $200,000- $250,000. There are a lot of move-up buyers selling smaller homes north of 75th and moving to slightly larger homes south of 75th. Additionally, we are seeing a lot of established families moving into our area for the great local schools. Yeah SMSD!
I could talk about statistics all day long. Just ask our team. For those of you that would just like me to cut to the chase….here it is.
Although we should still see some normal seasonal trends in our market, the Prairie Village real estate market is very healthy right now and my prediction is that it will continue to stay that way as long as inventory stays at its current level. We could even see an increase in sales if interest rates continue to tick up causing some of the non-active buyers to get off of the fence and buy a home.
This weekly sponsored column is written by Chad Taylor of the Taylor-Made Team and Keller Williams Realty Key Partners, LLC. The Taylor-Made Team consistently performs in the top 3 percent of Realtors in the Heartland MLS. Please submit follow-up questions in the comments section or via email. You can find out more about the Taylor-Made Team on its website. And always feel free to call at 913-825-7540.
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