Spring has sprung and typically the real estate market starts to heat up along with the weather. The 2017 real estate market was dominated by low inventory levels that helped to boost home prices. If you found yourself looking for a home in this market, you were well aware of the low inventory, higher prices, short times on market and the multiple offer situations that many buyers faced. This seemed to be a trend nation-wide and was certainly the case for us here in Northeast Kansas. This was the case for Lawrence, Eudora, Baldwin City, and pretty most every town around our area.
So, now that we are in March of 2018 what does that mean for you? First of all, if it has been a little while since you have bought or sold a home, one of the first things you will notice is that interest rates have crept higher here recently. The days of 3% mortgage rates is behind us, although rates are still very low for the time being. We will likely see another increase in rates or maybe two before the end of the year. This may be significant as higher rates to take away buying power for buyers. I am also hearing that mortgage refinances have slowed.
Many areas are still seeing unprecedented low inventory levels. Buyer demand is also high in most areas. This demand for housing is generating multiple offers. These factors also usually translate into lower days on market, and higher sales prices. Let’s take a look at some of the nearby cities and see how inventory levels look.
Eudora, KS for example has only five homes actively on the market in the city limits. Expanding our search into the rural areas of Eudora shows us another five active listings for a total of ten. The average days on market in Eudora, KS within the city limits is 66 days. However, if you remove one listing that has been on the market over 250 days the average days on market drops to 20. In the last 12 months there have been 74 homes sell with an average days on market of 37 and an average sales price of $185,280.. There is currently just under 1 month of inventory in Eudora, KS indicating that we a strong seller’s market. Here are the current .
A look at the Lawrence, KS real estate market shows that there are currently 155 homes on the market within the city limits with an average days on market of 66 and an average list price of $329,071.In the last 12 months there have been 1282 homes sold with an average days on market of 38 and an average sales price of $220,768. There is currently a 1.45 month supply of inventory in Lawrence which again shows a strong seller’s market. Here are the
BALDWIN CITY, KS
The Baldwin City, KS real estate market is much the same as Eudora and Lawrence. Currently in Baldwin City there are 13 homes for sale with an average days on market of 75 and an average list price of $278,330. In the last 12 months 65 homes sold with an average days on market of 30 days and an average sales price of $180,964. There is currently 2.4 months of inventory in Baldwin City which again is a seller’s market. Here are the
What does it all mean for you?
What does all of this mean for you if you are thinking of buying or selling a home this spring? If you are selling, now is the time to get your home on the market. The lack of inventory means much less competition for your home which should translate into a shorter time on market, and a higher selling price. Keep in mind that in any market your home must be price correctly and be in a market ready condition. Timing will likely be critical for home sellers this year as rising interest rates and a possible correction or shift to a buyer’s market could catch you off guard and extend your time on market. Buyers may find that they are continuing to compete with multiple offers and paying a bit more for their loans. In a seller’s market it is critical that you are ready to go, have your financing in order and have an agent that communicates with you so you do not miss out on an opportunity. Having an agent that can properly coach you through a multiple offer situation is also critical.
If you are considering buying or selling a home this spring/summer, give The Abram Team a call at 785-371-4488 or to help you with all of your real estate needs. We would also be happy to consult with you and explain more about what all this means and how it may affect you.
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