Housing bubble, mortgage meltdown and market crash. Just a few of the terms used to characterize the gyrations of the Overland Park housing market over the last 10 to 15 years or so. To be sure, there’s no shortage of commentary on topics surrounding the Overland Park housing recovery, market conditions or what the forecast holds for 2019 and beyond. But what does the condition of the Overland Park housing market mean to you? In any given year, it affects everyone looking at real estate in the Overland Park area because we all need a place to live.
Mortgage interest rates, available Overland Park housing inventory, affordability, new construction starts and other indicators mean different things to homeowners, renters and investors. But when it comes to housing market news, rather than choosing what to believe, what to watch or even whether or not to pay attention to it, consumers should turn their focus completely to themselves and their goals. If you own a home currently or hope to someday, it’s always a good idea to keep tabs on stories that relate to your situation.
Here are some factors that will likely influence the 2019 Overland Park housing market:
Concerns About Overland Park Housing
Affordability has become an issue as home price appreciation has increased for several consecutive years. For the nearly 80% of Generation Z that hopes to buy a home by the time they’re 30, they’ve got their work cut out for them. An analysis by realtor.com® projects that the median home price will rise nearly 50 percent, to $386,310 by 2031 when Gen Z reaches prime buying age. That means they would need to save $304 every month for the next 12 years to buy with a 10 percent down payment plus closing costs on that estimated median priced home. The good news is, it’s possible to buy a home with less money down – and many people do: The National Association of Realtors Profile of Home Buyers and Sellers found that first-time home buyers typically financed 95% of the purchase.
Overland Park Lifestyle Choices
High-income people make up nearly half of renters nationwide according to RENTcafe. There are 2.1 million renting households with earnings of $150,000 or more. Some describe it as a mindset, saying, “…monthly rent is a smaller price to pay for having more flexibility or for being able to live closer to jobs, hip city centers, and art districts.” It’s important to evaluate the assumed convenience of renting against the benefits of ownership. Consider the difference between treating Overland Park housing solely as a recurring monthly expense or an investment with potential returns in the form of equity and appreciation, then base your choice on your long-term plans.
Major Gains in Overland Park Housing
Home values are back, regaining the $9-trillion lost in the crash of the late 00s and subsequent recession. The U.S. housing market reached a cumulative value of $33-trillion dollars at the end of 2018 – $4-trillion higher than the 2006 peak. Home sellers have capitalized on the rebound, with average home price gains in the Overland Park housing market since purchase reaching $61,000 in 2018, up $11,000 from the previous year and $21,500 from 2016, bringing seller profits to a 12-year high. Additionally, homeowners are staying put longer. According to First American Financial Corporation, the average time in a home jumped to seven years during the aftermath of the crash between 2008 and 2016, and the most recent data from December 2018 shows that the median length of time someone lives in their home has increased 10 percent compared with a year ago.
What’s interesting about a home is that it is both a need and a means: it’s a universal necessity that can also contribute to financial stability and growth. Renters and homeowners alike should keep tabs on certain things in the market and in their personal lives to be ready to act on or respond to a market shift. Renters should monitor their credit and get their finances and savings on track so they can buy a home – if and when they choose to. Homeowners should check their neighborhood property values, sales activity and their own equity, as well as periodically review their mortgage to make sure it’s the best rate and program available. Real estate and mortgage professionals are great sources of information even if you’re not planning to make a move. Reaching out to them for a quick, no-obligation consult can help you get on course – or stay on track – for the living situation that’s a true fit for you.
Trying to determine when or if you should buy a home in the topsy-turvey Overland Park housing market? Turn to the expert help of an exclusive buyer’s broker like T.J.Lamb Real Estate to assist you. Now more than ever it’s critically important as a home buyer to have an agent on your side, looking after your best interests. T.J. Lamb Real Estate is the area’s oldest and most experienced exclusive buyer broker. Call us today for a no-obligation consultation to help you decide if now is the right time to invest in Overland Park housing.
Come see how we’ve helped thousands of home-buyers in Overland Park and surrounding communities with their home-buying needs, and why we’re fortunate to be among the top-rated exclusive buyer’s agents in the area. Call us today at 816-224-4393.