Foster Homes Report: Monthly Real Estate market update
Last week, the cover of the front page of the Wall Street Journal read: “U.S. Inflation Eases to 5%, Lowest in Nearly Two Years.” The real estate market is based on a lot of economic factors, including inflation. What does an inflation decrease mean for the American consumer?
According to Lawrence Yun, Chief Economist with National Association of REALTORS® (“NAR”):
“Calmer inflation means lower mortgage rates, eventually. The 5% consumer price inflation in March is a steady improvement from 9% last summer, 8% in autumn, 7% during Christmas, and 6% in the early months of this year. The ideal inflation of 2% is still maybe a year away, but this directional improvement is a clear signal to the Fed to change its tightening monetary policy, especially considering that many regional banks are still on the edge of further interest rate risk blowup.”
This is great news for Johnson County, as it is likely that we will begin to see a decline in mortgage interest rates. We cannot predict when this will happen, and it will not be an immediate change. What we can expect at some point later this year or next – is that interest rates will go down.
As the Johnson County Spring Market begins, Inventory is up 13.7 percent in March 2023 in comparison to March 2022, according to the Heartland MLS (March 2023). This is more selection for buyers. The Average Sales Price has increased by nearly four percent since this time last year, which is a nice uptick for sellers as we enter the Spring Market.
Turning to the Historical Average Sales Price, you’ll see that Johnson County’s average sales price increases each year over the past decade from 2013 to 2023. The Average Sales Price is also approximately $100,000 more in comparison to the average sales price of other cities in the Kansas City area according to the Heartland MLS.
Johnson County market update
This week in Johnson County there were 967 active listings and 1350 listings went under contract. (Source: Heartland MLS, April 19, 2023).
Maggie is a ReeceNichols real estate agent and a third-generation realtor. It’s her passion to provide a professional and positive buying and selling experience to her clients. Maggie has been featured in Realtor.com, Apartment Therapy and in other publications. https://maggief.reecenichols.com/