What a difference a year makes! At this time last year, we were recovering from our 2019 hangover and getting the year started. Wuhan, China was being introduced to us for the first time, and as good Americans, we didn’t think much about the city 7,271 miles away.
That was then, this is now.
A year later, our Kansas City metro area closed out the year with an explosive December.
December tends to be a slower month for real estate. Low interest rates, strong demand, brutally low inventory levels and a change in consumer mindset resulted in a 17.1% increase in combined new home and resale home sales for the month. In addition, the average sales price increased 13.7% year over year for December. When supply is down 54.5%, you are going to see multiple offers for over asking price on the homes that come to market.
As for the year as a whole, it was nothing short of spectacular. Closed transactions were up 6.3% for a total of 43,419. Days on market average dropped from 50 days to 43 days. The most notable number to me is the average sales price, which jumped 10.4% for the year, from $246,979 up to $272,623. This number is insane. Kansas City likes to think of itself as 2-3% appreciation year over year city. From 2010 to 2020, the average sales price has gone from $160,000 to $272,623. This represents a 70% increase over the course of 10 years. It’s a great story.
Where we have been is unprecedented, but what does the future hold? 2021 should be another amazing year for Kansas City real estate. The influx of new residents from larger cities, due to different work expectations, quality of life and cost of living should insulate us from a possible correction in the marketplace. The secret of Kansas City has come to an end.
Last weekend, we had 75 showings and 18 offers on a property in Johnson County. If you are planning on waiting for the “Spring” market, it has arrived with today’s snow storm. Numbers and statistics matter, but every home and neighborhood has its own nuances. If you would like to know how your home stacks up, call me.
We like to look at your overall goals and objectives when helping you decide what your next steps should be when it comes to buying or selling property. In addition, we have many buyers and off market sellers, so call for more information.
Here is to another interesting year ahead!