 | Robert Cobb is Managing Broker/Owner of CENTURY 21 Cobb Realty in Pittsburg, KS. He is a life-long resident of Pittsburg and a PSU graduate with a BS in Business Administration. He has been in the real estate field for 23 years. He is currently a KAR Director and the President of the Pittsburg Board of Realtors. |
Real Estate
2011-02-01 13:40:00
How does the local market look for buyers and sellers?
Question: How does the Southeast Kansas Real Estate Market look for buyers and sellers?
Answer: According to National Association of Realtors statistics for the Southeast Kansas area in 2010 there were 1,503 active listings, with 707 of those listings coming on the market during 2010. There were 322 listings sold, with an average inventory of 4.7 months at the end of the year. The average listing price was $121,780, with the average sold price being $96,545. The average days on the market for sold properties in 2010, was 168 days. Comparatively in 2009, there were 1,432 active listings, with 621 of those being new listings in 2009. The average listing price was $119,134; average sold price was $89,406. There were 358 properties sold, with an average inventory of 4 months. The average days on the market for sold listings in 2009, was 178 days. Although there were more listings on the market for 2010, there were 36 more listings sold in 2010, then in 2009, the average sold price was $7,139 higher in 2010, then 2009, and the average days on the market was down by 10 days.
So what in the world does all of this mean for the real estate market in Southeast Kansas? Let’s start by talking about what it means for Buyers. Whether wanting to buy a home or if looking for investment property, it couldn’t be a better time to buy. Here’s why. Interest rates are lower than they were in the 1960’s, but starting to rise again. The government has held interest rates at lower rates artificially for almost a year in an effort to help stimulate the market and medicate an ailing economy. As the economy begins to recover, we’re seeing interest rates beginning to rise again. Due to poor mortgage investment practices in the early 2000’s, criteria for mortgage loans are continuing to tighten, which can restrict who is eligible to be able to buy real estate. In addition, in looking at the price comparisons between 2009 and 2010, although there is a larger inventory to choose from (mainly due to the increase in foreclosed properties being put on the market) we did see an increase in sold property prices in Southeast Kansas and a decrease in the number of days those properties were on the market. If, as a buyer, you have been waiting for the lowest price or that bargain that will give you your best return on investment, the aligning of the stars are probably going to be at their best over the first three quarters of 2011. According to national economist’s projections, it is thought that we will finally see the market bottom-out by the end of the third quarter in 2011. Prices will begin to be on the incline again in the fourth quarter. We are continuing to see an increasing number of foreclosed properties come on the market, which have driven real estate prices down to an extent. This has increased the volume of properties on the market causing an unknown historical affect on the economic principal of supply and demand. With all things being equal (that is quality and desirability of available inventory) in this model and demand of these properties being down it would mean prices have to drop. However, what we have seen is the quality and desirability of the increased inventory caused by the influx of foreclosed properties not being equal to Buyer demand. It would seem that we saw this demonstrated in the 2010 market sales, where quality demand caused a slight increase in prices along with a shorter market time.
What about for sellers? If you have to sell now, or for that matter at any time when selling property, pricing is the key to selling as quickly as possible. Buyers are just like you, they want the best value for their money. This means your house has to be in the best condition for the price asked. You need to get your house market ready at least two weeks before you begin showing it. Again, Realtors visit houses daily that are on the market and can define for you what is considered market ready for attaining the best price in the shortest amount of time. Remember, every month you don’t sell your property you are continuing to make mortgage payments, pay taxes and maintenance costs on the property, so consider this continuing cost compared to what you may be trying to gain in getting your property sold at the best price. Ask your Realtor what the average days on the market for properties in your area are in relation to the same price range, to help project how long it will take you to possibly sell your property. Be flexible about showings. You have a lot of competition, even though it might be inconvenient to show on the spur of the moment, the more amenable you are about letting people see your property, the sooner you’ll find a buyer. There are a lot of easy pointers, low cost or not cost, that Realtors can provide you with in making sure your property is in peak condition for the most profitable and time efficient sale for you. You’ve hired an expert in real estate sales to help you sell your property. Their guidance will help you receive the most from your investment, just as you depend on your investment adviser to best manage your financial investment portfolio, trust in the knowledge of your Realtor.
In conclusion, just as with the return of the economy that we saw in 2010, we have, according to our real estate statistics for Southeast Kansas, seen an improvement in the real estate market for 2010. Like the national projections, hopefully we will see increased movement in the market, making 2011 a better year.
