Overland Park Market Statistics for March 27th 2013

Overland Park residential housing statistics March 27th, 2013

There are 536 homes for sale in Overland Park KS as of March 27th, 2013, two less than my last report. Current asking prices in Overland Park range from $54.9K for a condo or loft in Park Place off of Metcalf to $2.5 Million for an equestrian property on 14 acres m/l. Asking prices are the same as listing prices.

In the last 60 days there have been 336 homes sold in Overland Park. Selling home prices, in the last 2 months, range from $39,500 for a condo/loft in The Crossings to over $1.27 Million for a large estate style home in Mills Farm subdivision.

How do you get some meaning out of the housing numbers? Figure out the absorbtion rate.

Defining and using absorbtion rate

Absorbtion rate is how many homes are selling per month on average. Using the absorbtion rate and comparing it to the available list of homes for sale will provide the months of inventory on hand. The number of months of inventory gives a rule of thumb measurement about the state of the housing market. The lower the number of months of inventory on hand the better it is for home sellers. Home sellers have the advantage when inventory is low and demand is high because there is more demand than supply. If the market had been dropping it might allow home prices to level off and stop dropping. Houses in good condition with above average advertising and marketing can, and do, move very quickly

Taking the number of homes sold and dividing by 2 months gives a sales pace or absorbtion rate of homes 168 homes sold per month. With the 536 homes for sale, divided by the current demand puts Overland Park, in general, into a Seller advantaged market with 3.2 months of inventory. Demand is outstripping supply. The number of months of inventory has shrunk since my last report. A seller advantaged housing market is thought of anything under 5.5 – 6.5 months of inventory based on taking the number of homes for sale divided by the absorbtion rate.

So what does that mean to a home seller? Price your home well compared to the competition and in its current condition and you should be in good spot. Even in a seller advantaged market buyers will still not buy overpriced homes or homes that are in poor condition compared to the other homes on the market.