2020 has been the year of “TBD” in so many ways it’s not even funny. The same “TBD” applies to the real estate market as well.
Prior to the pandemic, our market was shifting out of a strong seller’s market and into a more balanced market where buyers would finally have more to choose from due to an increase in housing inventory.
But, unfortunately for buyers, the shift never happened. With offices, restaurants and shops closed during the pandemic, people began looking for places they wanted to be spending all that time at home. COVID threw us right back in to a seller’s market again.
Fast forward to August, and we are technically still there.
Take a look at the graph below, and you’ll see that the number of active homes for sale was down 27% when you compare August 2019 to August 2020:
At the same time, the number of homes that went under contract last month was up 16%. As we have discussed before, when supply is down and demand is up, the market benefits the home seller. That is exactly where we ended the month of August.
And we’ve continued to see extremely high demand for homes in the Shawnee Mission School District.
You can see from the graph below that as of the end of August the Shawnee Mission School District only had 0.8 months of housing supply:
This means that in less than 30 days, at the current rate of sales, all of the active homes in the SMSD would be under contract. That is bananas! This is unbelievably low housing inventory for this time of year.
Historically, in our market, housing inventory reaches its low point in May or June of the year and then increases steadily for the rest of the calendar year. You can see from the graph above that inventory has been steadily dropping since January and has not begun to rise as of yet.
Although we won’t have September’s numbers for a few weeks, we are seeing that overall showing activity is slowing a bit. Some of that can be attributed to the start of school- especially because this was the weirdest start to a school year ever! That being said, school does not affect all buyers and sellers out there so we may be witnessing the beginning of the end of the hot seller’s market. TBD!
As I have said before, each city, neighborhood, and even subdivision can operate as its on micro-market. If you would like to know how your micro-market is doing, contact us today.
This 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% 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.