It appears that at least for certain price ranges and neighborhoods in Kansas City there are the signs of a sellers market emerging. Homes going under contract for full or above full price in less than a week is becoming more frequent in the last couple of weeks. This could be because of the tax credit expiring April 30th, or possibly pent up buyer demand, or a combination of both. The real question is how long will it last?
I'm no recognized industry expert by any means, but I do work successfully in this industry. I feel that while the expiring tax credit plays a role I really feel that pent up buyer demand is a bigger issue at play. Home sales have been down for almost 18 months. The home buyers out there who have been putting decisions off for a while are finally getting back in the market.
The biggest factor that drives home prices is demand. If multiple buyers are interested in a property and multiple offers come in a bidding war ensues. This bidding war will inevitably push the price over asking price because no one knows what others are bidding. This is encouraging to see and I've seen it first hand working with buyers and sellers.
In my opinion the buyer demand will keep the market strong for at least through the summer. There have been experts advising buyers to wait until after the tax credit when prices tumble. Of course this philosophy will only work if no one listens to the advice. If droves of buyers are waiting patiently for May 1st to come around then the prices will remain high and the market will remain strong.
I started in this business in April of 2008. I've never seen a crazy market where homes sell before the agent even gets them posted on MLS. I can tell you however, that I've had much success getting homes sold quickly. This market we find ourselves in currently is great, and I think it is pretty close to a normal market. A normal market is better considered a flat market. It is important to note that flat markets don't last long in any industry. Normal economic rules will dictate that we will be swinging to a sellers market slowly but surely.
When you are choosing an agent to represent you buying or selling, make sure they've had success in this current market. You want to be sure they are there to fight for your best price when you're selling, and ensure your offer gets considered when you're buying. If you have someone representing you that thinks the market is still a buyers market and suggest you submit offers 10 or 20% below market value you will be loosing many opportunities to buy.
I hope this was helpful, anyone thinking of buying or selling a home needs to know this a great time. Low prices and low rates won't last forever.