By Chad Taylor
The early numbers are in and as I write this column, it appears that housing inventory in the Shawnee Mission area is on the rise. The number of active homes for sale in April 2019 compared to last year has dropped slightly by 3 percent ( 1,014 down to 984). At the same time, the number of homes to go under contract in April is down by 22.5 percent (472 down to 366). The number of homes that closed in April is down by 16.1 percent (348 down to 292).
What the heck does all that mean you may ask?
In a nutshell, it just further illustrates the market shift out of the strong seller’s market that we have been in for 6 years now. Please keep in mind that we are still in a seller’s market, perhaps just not the one where every sale is a bidding war. The lower price ranges are still extremely competitive where homeowners, investors and builders alike are competing for homes. However, in the 300K+ price range, things are beginning to normalize a bit. And by normalize I mean that buyers may actually have five minutes to consider whether or not they want to make an offer on a particular home or not.
I am sure that you can sense my sarcasm, but the last few years buyers have literally had to make a decision on the spot if they wanted to submit an offer on a home. If they slept on it, most likely it was gone.
What we are feeling right now is that the hot spring market may be short-lived. There was a lot of frenzy early in the year, and yet know it appears that demand for the year may have already peaked. If this is the case, then home seller’s will find that they will have more competition as the calendar progresses. At the same time, this would create more housing options for home buyers. And options are good when you are a buyer.
If you look at the graph above, it shows that as of the end of April, the SMSD had 1.5 months of housing supply. The two year average is at 1.6 months, so we are just slightly below the average currently. If you notice, the supply of housing will historically continue to go up through the rest of the year. We did not see the currently inventory level (1.5 months of supply) in the SMSD until June of 2017 or July of 2018, yet we are already here in April. We will be watching the upcoming months very closely to see if increase in inventory starts to place downward pressure on home prices. A drop in median home prices is inevitable at some point. But when?
If you would like to know how your home’s value is being impacted by these changes, please click here to request a free market analysis for your home. https://www.taylormadekc.com/whatsyourhomeworth
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.