Overland Park KS Homes for sale & Johnson County Real Estate Blog: December 2011

The Kansas City Star just began publishing a new insert aimed at Johnson Countians aptly named "913" after the area code.  Although the inaugural piece was interesting, it also struck me as very negative, feeding every stereotype that has made Johnson County and its residents okay to hate on both sides of the state line.  

As a Johnson County realtor, I read with great interest an article on the local housing market.  The eye-catching headline spoke to a housing "crisis" in JoCo.  Sensational news is the only kind that sells it seems.  Particularly when print media is losing the battle to online media, it is understandable that news reporters have morphed into newsmakers.  Click here to read the entire article.

The premise of the article is that the housing market isn't so rosy in Johnson County.  While we have not seen the increases in housing values that we are accustomed to, I would hardly call this a crisis.  California, Arizona, and Florida have a housing crisis with homes losing half of their value in a few years.  What we are experiencing is a period of static or slightly lower housing values brought on by a national economy that hasn't fluorished and an over-abundance of homes, particularly new homes.  This is not to say that on a case by case basis there hasn't been some hardship for many people.  Foreclosures have gone up.  People have lost jobs.  Many must bring money to the closing table because their home isn't worth what it once was.  Notwithstanding the true hardships faced by some, this isn't the scenario for most Johnson Countians.

It is time for some perspective and context to what has become a fairly static local housing market.  Johnson County enjoyed an average 4% appreciation in home values for a sustained period of a couple of decades.  Prior to this unprecedented growth period, the housing market was not so great.  The inflation of the 1970s and 80s led to extremely high interest rates, forcing mortgages up and selling prices down.  This period was preceded by a boom in the county during the 1960s when population growth took off.  Residents during the 1930s and 40s probably didn't think the Johnson County market was so great then either with high foreclosures and extreme unemployment.  My point is the housing market is cyclical, not unlike our economy.  Before we decide the sky is falling we need to look at what happened previously and look forward to how to position ourselves in the future.  

Have we simply grown accumstomed to an embarrassment of riches, unable to face stagnant home values when all we have known as homeowners is a 4% annual return on investment?  The 913 article alludes to the fact that Johnson Countians can longer count on their houses to finance college education, retirement, etc.  The reality that is as true today as it was in the 1930s is homes were never intended to be our personal piggy banks, a guaranteed slot machine that with a pull of the lever hit cherries every time.  What is happening in Johnson County has played out across the country.  A market force correction that presents a short-term stagnation but should by no means serve as a harbinger for only dark days to come.

Johnson County has all of the tools to thrive in the 21st century from an economic and housing perspective.  JoCo still has by far the highest average housing value in the metro at $243,717.  Platte County ranks second and trails Johnson County by a whopping 22%.  Just as importantly, our median income continues to exceed regional norms, meaning there is still the capacity to purchase homes.  Housing inventory continues to decrease, getting closer to a balance that favors buyers and sellers equally.  House sale prices are very close to where they were one year ago in the county, indicating declines may be waning.  Johnson County is still very attractive from an affordabiity standpoint ranking nearly 20% lower than the average in the cost of living index.  Our median age is approximatley 35, a prime time for home purchasing and only 28% of Johnson Countians are renters.  This indicates the goal for most is still home ownership.  Combine our favorable demographics with strong local government, excellent schools, and diversified job opportunities and we are poised to prosper!

Working at Home During the Holidays?

Judging by the full parking lots at our area shopping centers, it seems as though everyone has a flexible, work at home schedule, opting out of rush hour traffic and face time at an office. While working from home has its definite advantages, it can also be tricky to balance holiday demands that encroach on our work time and space, particularly while the kids are on break. Here are some tips to preserve professional productivity but balancing it with the extra duties of the season.

1. Making a list and checking it twice. It is so easy to get distracted by holiday activities. One tool to keep you focused on job tasks is to make a daily, weekly, and monthly list of work duties to be completed. There is nothing like checking off an item on the “to do” list to give a sense of accomplishment. Make a separate list for holiday tasks and assign dates for completion.

2. Santa’s workshop should not double as your office. Your workspace should be physically separate from your living area and ideally have a door you can shut. This line of demarcation keeps others from distracting you. Have a conversation with the family about respecting the office space and establish office hours in which you are not to be disturbed.

3. Resist the urge to channel your inner Martha Stewart. If you’ve never made your own wrapping paper or cooked candy from scratch, this may not be the best time to attempt it with all of the other extra holiday duties to perform. Remember, she gets paid to do that, you get paid to do something else!

4. Balance work with play time. Schedule time to do the holiday activities that you most enjoy. Working at home doesn’t mean exclusion from the meaningful and satisfying holiday traditions. It’s just a matter of prioritizing between the competing demands and identifying what is most important for work and play!

Is January the new June when it comes to getting your home on the market? Even though we haven’t had the first significant snowfall of the season yet, the ideal spring season for selling a home begins as early as January, a change to the conventional thinking that April, May, and June are the prime months for selling a house. In Johnson County and around the country, the housing market has favored buyers for several years because of the substantial housing inventory available. Savvy home sellers, realizing that less competition means greater opportunity for a sale at optimum price, are trending toward earlier listing dates so that they are not one of many available homes come June.

The stats for the Kansas City metro support this phenomenon. In January of 2011, 13,558 homes were for sale, compared to the peak inventory months of May and June in which over 16,000 homes were available. This translates to 7.9 months of available inventory in January, compared to nearly 10 months of inventory in May and June, clearly presenting a selling advantage for January listings.

Another attraction to listing in winter is the buyers tend to be more serious about purchasing a home. It takes a commitment to trudge from house to house in January and February. Looking at homes is not something you choose to do as an entertainment/leisure activity in January as opposed to a beautiful day in May. Winter buyers are on a mission and will not stop short of a purchase!

If you believe 2012 will be the year to sell your home, consider bucking convention and getting a quick, competitive start in the market. Please contact the Russell Home Team today for a listing checklist to prepare your home for sale and/or a comparative market analysis (CMA) of where your home should be priced in the current market.

******Special Announcement******

Mortgage giant Freddie Mac has announced a special incentive for Overland Park and Johnson County Kansas forclosed properties. Freddie Mac will pay 3% of the homes purchase towards your closing costs. This incentive is available when you make an offer on an elibible Freddie Mac property between now and January 31st 2012. You must close the sale prior to March 15th 2012.

Click Here to see Overland Park Foreclosed Properties 

Fore more information on Freddie Mac, Fannie Mae or HUD forclosed properties contact the Russell Home Team today at 913-681-1383