The October 2014 Market Report is out from KCRAR. Click Here to get your Copy with Breakdowns by County.
Overall we see that we have an increase of about 5.2% in closed sales of both existing and new construction. The average sales price is up about 3.5%. And the Inventory is down by 7.4%.
Of course here in the Kansas City Metro we always see a lower inventory and slowdown of sales each and every year as we head in the Holidays, the charts always bottom out November, December and January.
But as we see an over all supply reduction, prices are going up a bit and we are seeing a slight reduction in the days on market.
So why do we have a reduction in inventory? Well first of all we are looking at numbers from 2013 to 2014 and there are still a lot less houses on the market in short sale or from bank owned and why is that? Well banks are still trying to hold on and keep loans going as long as possible and not foreclosing like they once did.
Plus rather than foreclosing on the defaulted loans they have found a huge source of anxious money from huge Hedge Funds to people in the Real Estate Industry. Rather than foreclose they are selling the defaulted mortgages in bulk to Hedge Funds. The Hedge Funds who pulled out of the stock market and turned to real estate are buying up these loans for much higher prices and giving the banks a much better alternative to foreclosing.
The banks loose less money by selling to the Hedge Fund and they have less bad press from foreclosing on their customers.
The Hedge Funds are working out the ones they like the best, usually the loans over $200,000 and they are selling off the lower price band loans under $200,000 to smaller funds and to investors at the REIA group.
So those of us who are used to going to the MLS and buying bank owned REOS, we are finding fewer and fewer available, much more competition for them and much higher prices.
So if you are tired of chasing too few REOS find out how you can get the note and have a lock on owning the future REO. If you are tired of being a landlord and dealing with tenants and toilets and want the same cash flow and income, with out the headaches, you may want to learn more about cash flowing notes. So we are excited to bring you an update on the industry in January so you can find out why there is such a shortage of Inventory, why the Inventory is going to remain limited and how you can transition from REOs and Rentals to Non-Performing, Reperforming and Cash flowing notes.
Join us at the January 13th Meeting for the State of the Industry Update with Eddie Speed and then come back on the 24th to find out why you need to learn the Note Business and get a basic understanding of how the Note Business Works. Get all the details on the January Calendar of Events.