By Chad Taylor
As the turkey hangover wears off and and I mentally plan for my Thanksgiving left-over dinner, I cannot help but reflect on what has been a tremendous year for real estate in Kansas City. As an agent who worked through the recession, it is pretty easy for me to be thankful for almost any market. Yet this year has been better than most. How so you ask? Here are a few examples.
Sellers win, and win again, and then win some more. In 2016, sellers have been the king of the castle in more ways than one. Not only have sellers enjoyed sitting back and watching the offers roll in, they have also enjoyed selling in a day or two for well over list price. And when it came to inspection repairs, in most cases sellers were able to hold a firm line on what they were willing to address because if the buyer walked, they had another buyer waiting in the wings. Tumultuous inspection negotiations during the sale was almost like a pack of sharks smelling blood in the water. The other interested buyers, whose offers were not chosen, were swimming around just waiting for the sale to fall apart.
Historically low rates. For yet another year, interest rates have stayed low. I mean really low. In most cases, less than 4%. That is almost free money in the scheme of things. Low rates have almost become the norm (but not for long). The gift of low rates and high affordability are usually not appreciated until rates go up. Which is on the horizon. CBS news recently reported that a rate hike is likely at the December fed meeting. Low interest rates have allowed values to sky rocket because the low cost of money has lessened the sting of higher home prices. When prices and rates go up, buyers will be able to tell a significant difference. But for now, buyers and sellers alike are thankful for low interest rates.
Sellers are no longer under water. According to Keller Williams Realty International, less than 8% of homeowners are under water or in a negative equity position today. To put this number in perspective, in the fourth quarter of 2011, 25.2% of homeowners nationally were in a negative equity position. I remember those years, and about 1 out of 4 sellers that hired us were writing a check at the closing table to sell their home. I am extremely thankful that our clients today, in most cases, are thrilled at their equity position. It is amazing the difference that five years can make.
Lastly, I am extremely thankful to our readers. It warms my heart when someone shares with me that they read our column on a regular basis and value it as a real estate resource in our community. My goal in the years to come is to continue to provide the community with pertinent real estate news and to earn the opportunity to be your local real estate economist and consultant of choice.
Here’s to you and yours for a joyous holiday season!
This weekly sponsored column is written by Chad Taylor of the Taylor-Made Team and Keller Williams Realty Key Partners, LLC. The Taylor-Made Team consistently performs in the top 3 percent of Realtors in the Heartland MLS. Please submit follow-up questions in the comments section or via email. You can find out more about the Taylor-Made Team on its website. And always feel free to call at 913-825-7540.