KCRAR/HMLS just released its market reports for July 2020 and the trends observed last month, and for much of the year, have continued. A couple of numbers stand out for me.
First, Inventory is at 118. That is 118 homes for sale in Johnson County, Missouri. That is an extremely low count, and results in a Supply figure of 1.9, another eye-popper. If homes sell on the current pace, and no new listings are added to the market, all the homes would be sold in 1.9 months. Most real estate economists consider a 6 month supply to be a balanced market and anything less to be favorable to sellers. We've been in a seller's market for years in Johnson County. This trend has been exacerbated by a nationwide pandemic response that has throttled the economy and a contentious election cycle. We are fortunate to feel less of an impact in our area, but we still see the results. Still, the question that comes to mind is why has new inventory not been coming on the market in this area to meet the existing demand for years now?
I have my opinions. Let me know if you have yours.
Second, the Median Price of sold homes was $205,000. This compares to $181,828 in July of 2019, $170,500 in July of 2018, and $166,650 in July of 2017. The Median Price is rising due to strong buyer demand in the face of historically low inventory.
Here is the Inventory picture for the entire Kansas City region, which does include Johnson County, Missouri.
Wow.