By Andrew Bash
It’s no secret that the housing market has been interesting to say the least as we left 2020 behind and moved into 2021!
Along with the rest of the country, real estate sales were essentially at a standstill a significant portion of last year due to the COVID-19 pandemic. The real estate market in the first quarter is typically a good snapshot of what we can expect for the rest of the year.
Here is what the numbers show:
- In the first quarter of 2021, we have consistently seen increasing housing prices and low inventory. Contributing to demand are consistently low interest rates — the average hovering around 3.1% — as well as buyer willingness to pay more for what they want. The area encompassing the KC metro saw a more than 64% drop in the number of houses on the market between February 2020 and February 2021, according to the Kansas City Regional Association of Realtors. If you compare the first quarter 2020 statistics to those in 2021, you will certainly see numbers for Johnson County reflect these factors.
- Other KC areas are experiencing similar trends. Multiple offers became the norm and as pandemic restrictions began to ease, and home buyers across the metro area felt a sense of urgency. More than 3,000 homes sold in March 2021 alone, with the average sales price sitting at almost $300,000. Pending sales increased 7.2% compared to the first quarter of 2020. Also seeing a marked increase were closed sales, which increased 6.5% from Q1 of 2020.
- The rest of the United States sits in a similar space from a real estate perspective. The housing inventory in the nation’s largest cities decreased by almost 50% compared to last year, according to Realtor.com. For buyers, this meant nearly 500,000 fewer properties were available. New listings were down 24.5% year-over-year, compounding the inventory shortage.
I think the question on everyone’s mind is, “How long can we expect the market to look this way?” Experts say this situation will probably linger for the foreseeable future. Whether you are a seller or a buyer, having a professional team behind you that is knowledgeable and trustworthy is paramount in this challenging market. We are here to help you navigate these waters, both now and in the future!
Bash & Co. Sotheby’s International Realty is an innovative full-service residential real estate brokerage that leverages the latest technology to serve clients in emerging, established, and luxury neighborhoods across the Kansas City area. Follow them on Instagram here and on Facebook here.