Matthew Roever - Keller Williams Realty Partners

03/12/2023

Interest rates have started rising again after inflation popped up in January. The Federal Reserve will likely continue to increase interest rates as long as inflation remains elevated. This will cause mortgage rates to continue to increase.

With the collapse of Silicon Valley Bank (the second largest bank collapse in US history, and the first major bank collapse since 2008) on Friday and two more California banks currently being monitored by the FDIC for risk of collapse, the Federal Reserve might halt rate increases. Though the fed needs to crush inflation, progressive bank collapses would pose a far greater risk to the economy and could cause a change in policy. The next Federal Reserve Open Market Committee (FOMC) meeting will be on March 22. That afternoon they will announce any changes in interest rates. Additionally, they will likely be pressed to provide their opinion on the risk of bank failures. Only time will tell, but March is proving to be interesting.

02/12/2023

January 2023 Housing Market Status

1. For the first time years, home prices have stopped appreciating. This January the average home cost $312k while last year the average was 309k.

2. Days on market (how long it takes a home to sell) has increased to 41 days and will probably continue to increase. This benefits buyer and sellers. As a buyer you no longer need to rush to see a home the day its listed. For sellers the showing process will be less frantic than it was the past two years.

3. The average accepted offer has decreased to 96.2%. This indicates that home sellers are pricing their homes a little too high, but they are willing to come down for a good offer.

4. Winter home supply remained greater than previous years. This indicates more homes will be on the market come spring and summer compared to prior moving seasons.

01/29/2023

The graph shows the Housing PE Ratio; the average home price divided by average annual income.

This is a key metric when comparing the affordability of various cities. How many years do you need to work to afford the average house assuming all your money goes to the house and interest rates are 0%. Survey says a lot:

Kansas City Metro, KS/MO = 6.0 years
Johnson County, KS = 6.5 years
Tampa, FL = 7.5 years
Miami, FL = 9.3 years
Seattle, WA = 11.3 years
Los Angeles, CA = 14.5 years

Nationally, the Kansas City Metro was ranked #50 for most affordable when comparing PE ratios.

Though home prices remain elevated compared to the 10-year average, we have seen prices stabilize throughout 2022 (dotted line). Going into 2023, I expect home prices to remain stable in the metro. Nationally, discussion of a housing crash will only intensify as home prices in overpriced pandemic boom towns fall off a cliff.

01/07/2023

2022 sure was a rollercoaster of a year. We helped 1000’s of our neighbors find their home and continued to set records. We didn’t become the largest brokerage in KC by accident. Supporting our clients is always the #1 priority.

Thinking about moving? Send me a message or call so we can start your next journey!

Buy – Sell – Invest

08/18/2022

August 2022 Market Update:

The market continued to normalize in July. The number of homes currently for sale has increased while the time taken for homes to sell on average remains the same. Additionally, prices are no longer increasing substantially each month.

The housing market normalizing simply means its going back to how it was in 2019 and earlier. A normalized housing market is beneficial for home buyers and sellers.

How Sellers Benefit:
• Homes continue to sell quickly
• A properly priced home can still receive multiple offers
• More inventory means more options when looking for your new home
• You can easily find a new home while selling your current home

How Buyers Benefit:
• More inventory means more options
• Aggressive bidding wars with dozens of offers on a single home are a thing of the past
• Home prices have stabilized with increased inventory
• Less pressure to quickly make an offer
• Home inspections are standard again (as they should be)

Interest rates have dipped under 5% for 30 year mortgages in the last few weeks. Going forward, rates look to hover in the high 4’s to low 5’s as the 10-Year US Treasury rate stabilizes near 2.75-3%.

01/18/2022

A Look Back at the 2021 Housing Market

2021 was a record setting year for real estate. We hit record low housing supply, with some homes selling in hours and most selling in days. Kansas City was one of the top 10 most active housing markets for half of the year, and home prices increased 14.2% on average across the metro for the year.

At Keller Williams Realty Partners, we became the first brokerage in Kansas City to help our clients buy and sell over two billion dollars of real estate. It might have been a tough market, but our focus on our clients, and ensuring win-win real estate transactions led to our success.

What Will the 2022 Housing Market Look Like?

The market has started to shift back to our pre-pandemic normal. 2022 is shaping up to be an excellent year for both homebuyers and sellers. With strong homebuyer demand expected throughout the year, sellers will be able to sell their home with ease. Homebuyers will benefit from increased housing inventory leading to more options and few crazed bidding wars. Homes are typically selling for their list price. At the height of the frenzy in 2021, homebuyers were having to offer up to $50,000 over list price to win bidding wars.

For the year, economists expect homes sales to grow 11% because more homes will be available. Home price appreciation is expected to be back to our historical average of 4-5% year over year.
The only anticipated headwind is interest rates which are expected to rise to 4% for a 30-year fixed rate mortgage by the end of the year. The Federal Reserve has stated that it plans to raise interest rates 0.75% over the course of the year to combat inflation. If inflation persists, they might have to raise rates even more, further driving up the cost of a mortgage.

Will There Be a Market Correction or Crash?

Highly unlikely. The predictions about doom for the housing market are not grounded in the current data. Homeowner equity is at a record high while mortgage delinquency (at least 90 days late making payments) and foreclosures are at a 22-year low.

Thinking About Moving?

If you are thinking about moving and want to know how much your home is worth or what it’s like to buy or sell your home, please call me at (913) 209-4910 or email me at [email protected].

11/23/2021

For the first time in a year and a half, homes are now sell at 99.6% of their list price on average. It's still a seller market, but home buyers no longer need to worry about having to offer substantially over list price.

10/17/2021

Its official, the bidding wars are mostly over.

10/10/2021

Stop waiting for home prices to drop… they won’t.

The market is excellently positioned to benefit homebuyers and sellers. Low interest rates more than offset increased home values, resulting in lower monthly mortgage payments for you. Strong buyer demand makes selling your home easier than ever. The market is hot, with multiple offers and short time on market.

Message or call me to find your new home.

10/03/2021

Getting the price right on your home is critical to MAXIMIZE the amount of money you make.

Too high and nobody will tour your home, costing you time and money. Once you start to drop the price buyers will see an opportunity to offer even less.

Too low and you leave money on the table.

When evaluating the value of your home I determine 3 values:
1. Minimum list price: The lowest you should list for (for when you need a quick sale).
2. Maximum list price: The most you should list for to avoid losing potential buyers.
3. Strategic list price: My recommended price to maximize the amount of money you make on your home by driving peak buyer interest without leaving money on the table.

09/26/2021

07/12/2021