Supply and Demand Hard at Work in the Kansas City Market
The April 2015, Market Report from KCRAR is out and it just goes to show that the law of supply and demand is hard at work.
The historical average sales price for the entire Heartland Market is up to $197,737 a 4.5 percent increase over 2014. If we look at the graph we see the most recent low point was January of 2012 and the price has been steadily climbing since. It has actually surpassed the average high in 2006 by roughly $10,000.
And as the supply and demand law shows, the overall inventory is down 6.9 percent creating a 4.5 month of inventory, making this very much a buyers market.
This author just read a post on Facebook from a Kansas City area Realtor who had just helped a client write an all cash offer on a high end home a bit over list price, only to loose the deal because someone had offered more.
Area rehabbers are clamoring for inventory to buy and fix up because they can move inventory quite quickly.
However as we seem to be riding at an all time High in the Kansas City Market, should we be concerned a of a downfall soon to come?
Please note that the market report is broken down into the various counties across KS & MO.
Johnson County actually saw a One percent decrease and an 11.6 percent increase in inventory. Yet price is still at a High. This may be due to the fact that builders are bring a lot of new inventory to the market that we have not seen in the past few years.
Wyandotte County actually saw a 12.9% increase in average sale price with a 4.4% reduction in inventory. Price at a High.
Clay County saw a 0.7% increase in price and a 10.7% reduction in inventory and still at a historically high price point.
Jackson County’s average Sales Price is up 12.8% and inventory is down 8.6 percent. Again we are seeing historically high price points.
Platte County also up 9.4% in average Sales Price and a 15.9 percent decrease in inventory and also a historically high price pint.