Surprise, Surprise!

It is not that bad out there after all. When you meet someone new they always ask, what do you do for a living? When I tell them that I am a realtor the next question is always, how's the market? Now I have been very consistent on my views of the market. I have been touting what a great move-up market this is and to not believe everything you read in the media.

Well today I have to take back one of those two statements. For those of you who read the Kansas City Star Chris Lester's column got it right today. Real Estate is local and it always has been. What is happening in California has nothing to do with the price of Tea in KC. Nationally we have seen a 2 percent dip in home prices over the last year but in Kansas City that number is 0.7 percent, less than 1 percent. To put that number in perspective, the average price rose 38.8 percent over the last six years.

While I have to take back one of my statements I will not be taking back my other. This is still one of the best move up markets we have seen. What makes it a great move up market, well I will tell you it is 3 things.

Selection of Homes- During a seller's market there are on average 9,000 to 11,000 homes available for sale. Right now in our so called buyer's market there are just over 19,000 home for sale in the Kansas City metro area. Not only are there 15,000 resale homes available but there are also another 4,000 brand spanking new homes to choose from.

Interest Rates- Below 6%, usually I don't have to say more about this but a lot of first time buyer's have never paid 9% like I did on my first house or 15% like my parents did in the 80's.

Your Home will Sell- Not only will your home sell but it should sell for a good price, think about 0.7%. If your house is worth less than it was last year, so will the house you are buying. Most seller's move to a bigger house not a smaller one, 0.7% of $300,000 is more than 0.7% of $200,000.

I want to know what you think? Do you think now is a good time to buy? If not, then why?