If you’re a homeowner in Johnson County, Kansas, or planning to become one, I’m going to be sharing an update on the latest real estate market trends from June 2023. Make sure you stick around to the end of this video where I share what we’re seeing in the field, day to day, and an overview of Buffini’s Bold Predictions of what’s to come sooner than later.
Months of Supply
In June, there were 1.6 months of supply available in Johnson County, which is still strongly a Seller’s Market. This is up slightly from 1.4 months. Anything less than 4 months means there’s not a lot of inventory. The $400,000 and under price range is at 0 months of supply. The highest months of supply was at 5 months with condos between $600-800,000.
Average Sales Price
The average sales price for a home in Johnson County is $533,600 and that is barely down from last month but still up 8% from last year. This is the first Month over Month decrease since January this year but it’s so insignificant I don’t think it means much and looking at the entire Kansas City region, the average sales price actually went up 2%. This price range is sitting at 1 month of inventory everywhere in Johnson County for single family homes.
List to Sale Ratio
Moving along, the average list to sale ratio was 103.4% for June closings in Johnson County. That’s also barely down from last month and down 1.9% from last year but it also went up slightly in the entire Heartland area for June. The highest list to sale ratio in June was 108% in the $300-400,000 price range in the Prairie Village/Mission Hills areas.
Days on Market
It’s taking an average of 28 days on Market for a property to sell which is down 15% from last month and of course up from last year which was at 12 days. If you’re thinking of selling and fear you missed out with the last two years, it’s very clear that homes are still selling quickly overall and still over ask price, especially when priced strategically with low inventory driving the market. In the field, some homes are still selling very quickly but we’re also seeing some homes sit a little longer, just in the last 3 weeks. Homes over $600,000 significantly go up with Days on Market but they’re still getting over 100% list to sale ratio. So keep that in mind if you’re thinking of selling in that range.
Mortgage Rates
The mortgage rates are ranging from 6.45 to 7.12% today, depending on your loan type and terms. This is obviously not appealing to anyone with a rate in the 2’s or maybe 3’s. But there is good news ahead. I did just listen to Buffini’s Bold Predictions today where Brian Buffini and Dave Stephens talked about how Powell wants to get the Federal Reserve to 2% by 2025, putting rates in the 4’s with a slow decline in that direction. Again, it’s a bold prediction but they’ve been looking at those numbers much longer than I have.
Market Analysis
So, here’s what’s happening in the market, paraphrasing Stephens, anyone who is waiting on a 2008 market crash or for home prices to go down, don’t count on it and the main difference between now and then is 39% of nationwide homes are owned free and clear and another 29% of nationwide homes have more than 50% equity. In fact, US Home Equity has hit it’s highest record ever. We are still seeing a steady, year over year, home price appreciation and demand is still high despite increased rates this year. When those rates go down, we also have 3 Million households that make over $150,000 a year that are still renting that could enter the market. I don’t see foreclosure opportunities coming anytime soon. If you’re waiting to buy your dream home, all statistics show; buy now and refinance your home later.
Of course, every home and situation is unique. If you’d like help navigating the buying and selling process or simply want to chat about your future options, I’d love to hear from you. Feel free to call or drop me a message. Otherwise, check out my other videos and I’ll be back next month with an updated Johnson County real estate market report.
Cheers,
ReeceNichols – A Berkshire Hathaway Affiliate
913-948-3918 | 913-323-7222
heather@heatherbrulez.coom
For the Greater Kansas City area market stats:
