Housing prices have seen a spike in the state of Missouri in the last year.
In February of 2020, the average residential sale price was just more than $194,000, according to Missouri Realtors marketing statistics. By February 2021, the average residential sale price increased 25.2% to almost $244,000.
With sellers having the leverage as of late, the question looms as to what this means for real estate professionals, particularly those in the St. Joseph area.
“Now that people can work from home, they don’t necessarily have to live in a large city. If they do have to travel, they can easily get to the airport without a lot of traffic,” Horn said. “For the majority of the time, they’re working from home, so they’re looking a lot of times to expand, buy a bigger house. They can afford more here and they’re looking for a house with office space.”
Horn said she’s not seeing as many “For Sale By Owner Signs” recently. Those who sell a home without the help of an agent forgo paying commission to a Realtor for assisting with a home sale. The commission can either be a flat rate or a percentage that can range anywhere from 5 to 6 percent.
While permits in the Kansas City metro area are outpacing the number of new jobs, according to statistics from the National Association of Realtors, Jo Ann Cobb of Jo Ann Cobb Realtors said the shortage of houses in the St. Joseph area had her working a lot in 2020 and now into 2021. She said offers for many houses roll in once a property is listed.
“When I get an offer on one of my houses, I get like five offers within one day. The big thing for all of us Realtors right now is the shortage of houses to sell,” said Cobb.
While it’s still advantageous to be a seller as the demand for homes increases, Cobb said low interest rates make things favorable for buyers as well. According to data from NerdWallet, interest rates for 15-year home loans hovered around 3.3% this time last year. Those rates dropped to 2.8% as of 2021.
With new technologies such as 3D displays of homes used by real estate agencies to sell homes, buyers don’t have to be present inside a home in order to be enticed to purchase. Both Cobb and Horn have had to adjust to the new ways of selling during the COVID-19 pandemic, but Cobb said she is anxious to get back to the old ways of selling.
“I am very traditional,” said Cobb. “I’m not going to write a contract unless I’ve walked the person through a home for fear I would make a mistake on the contract or something. I want to do a person-to-person service.”