Spring is on the way....

With sub-zero temperatures and endless snowstorms, this winter has been one of the worst in recent memory. Buyer traffic has been down for much of the winter across the Mid-West as weather has slowed just about all economic activity.

The good news is that home buyers who may have been considering a move but postponing the purchase are watching interest rates that are beginning to climb from a low that was reached in 2010. Inventories of distressed (short-sale and REO or Bank Owned) properties have also been cleared from the market- at least for now. This has resulted in an abnormally low number of properties for sale in Riss Lake for this time of year.

The strongest market segment in Riss Lake is currently the entry level home priced from $300-$350K. "Move-up" buyers are interested in 1.5 Story or 2 Story homes that are well maintained and offer more room (and neighborhood amenities) than their current home. At the time of this writing there are very few listings that meet this criteria.

Moving up in price to homes listed between $350-$450K inventories are a bit healthier. There have been some recent contracts in this segment which is encouraging as well. With a shortfall of inventory at the entry level in Riss Lake, the higher price points could definitely benefit in 2011. Buyers will view these homes (because they make up a larger share of the inventory) and decide that they can justify the higher purchase prices as they represent even more compelling value proposition than the entry level home. Combined with interest rates which remain at historical lows and the cost of new construction rising along with commodity prices many homebuyers will find good reasons to buy in 2011.

The consensus among economists is that the overall U.S. housing market will continue to struggle throughout 2011. What is always important to remember that the housing market is an extremely localized market. Kansas City, Platte County, and even Riss Lake can and should be evaluated independently of the broader market. In this context, I believe there is a likelihood that 2011 is a year which brings price stability, lower inventories and maybe, just maybe slight price appreciation within the Riss Lake community.

Many economic indicators like GDP, household incomes, consumer debt and even the stubborn unemployment numbers have shown positive signs recently. All of this should encourage sentiment and lead to a busy selling season this Spring.

If you have specific questions about Riss Lake or any Kansas City real estate I am available by phone or email. Remember that I offer confidential no obligation consultations for sellers and well-informed local market expertise for buyers.