I think that most people, on some level, care about what's going on in the real estate world. It's been a wild ride through the 21st Century and the coming year is already shaping up to continue the interesting trends that have been driving our accelerated markets. In this newsletter I want to share some insight into the coming year as 2018 winds down to a close!
In Lawrence, prices are projected to end 2018 at an overall increase of 4.8% and total homes sold for the year should increase to 1,520 sales, reflecting an increase of 2%.
For 2019, Lawrence home sales should see another rise in appreciation of 3.9% and a continued increase in total homes sales to 1,550, despite historically low inventory.
Months-of-Supply in Lawrence continues to be less than 3 Months. This should continue, or tighten, in 2019. Consider that 4-6 months-of-supply constitutes a "balanced" market, and anything less than this is typically labeled a "seller's" market.
Home Prices in Kansas should rise overall by 5.2% by years end, and rise another 6.3% in 2019. Months-of-supply in Kansas remain tight, under 4 months as well.
Kansas City should see even more significant increases this year at nearly 8% and then yet another 8% next year.
New construction, in nearly every market across the country, is facing rising costs of both materials and labor, which together with the rising costs of land are forcing the prices up at which builders can add to housing inventory. As such, and together with the above info, housing affordability continues to be an issue.
The overall economy and employment in the local, state, and national economy are continuing trends that began about six or seven years ago and those trends have been leading up to the current real estate market. That market is considered by most experts to be robust and growing, and not indicating any upcoming "bubbles" or market corrections in the near future.
And, as always, I'm happy to field questions if anyone has any!