How Much Inventory is there in Your Market?

10 Replies

So, as you all have probably noticed, the market is really, really hot right now. I just checked the inventory for Jackson County, MO (the biggest county in Kansas City, where I'm at) and there is only 0.6 months of inventory in total! There were more sales in March than properties remaining on the market. A "balanced market" is 6 full months of inventory. I've never seen anything like this. 

How is it out there for all of you where you're at?

https://kcrar.stats.showingtim...

Prices have become prohibitive nearly everywhere in my opinion. We closed a 1031 exchange into your market  (KC) in December. I had another property I was planning on doing the same with sometime this year but I may just go into a wait and see mode for a while until the future seems clearer. Are you still buying actively?

@Scott Bowles I got you covered, of course! It is a tough market out there but I have some really interesting options that may help diversify what we already got you in to. I am ready to help whenever you are :)

Originally posted by @Scott Bowles :

Prices have become prohibitive nearly everywhere in my opinion. We closed a 1031 exchange into your market  (KC) in December. I had another property I was planning on doing the same with sometime this year but I may just go into a wait and see mode for a while until the future seems clearer. Are you still buying actively?

That's assuming 1031 exchanges are even around in a year or two... 

We're still buying, but not much. We increased our criteria given we think we're likely near the peak. And given how little inventory is out there, that means it's slim pickings to say the least.

Originally posted by @Alex Forest :

@Andrew Syrios
I don't have specific local inventory to share, but thought you might find this graph that plots months of inventory against home price changes interesting. Its on a national level, with current around 1.9 months. The last 2 months were lowest on record. Arrow is pointing to the latest.

https://www.calculatedriskblog...

That's basically what I would have expected but still incredible to see.

 

Here in the Tampa-St Pete-Clearwater area, we are running 0.7 months inventory, median price up 17.6% year over year on SFR, and 27.2% of all closings are in cash.

April numbers aren't out yet for Atlanta but we were at 1.1 month of supply for March. I'd guess that's gone down as we have gotten deeper into spring. Wouldn't be surprised if April was under 1, which would set another record for us. 

@Ever Socorro yeah N. Ga is incredibly tough for MF because there just isn't much up there and very little of what is there hits the market. But don't give up, just get creative with how you're looking for deals. Feel free to reach out if you want to bounce around potential creative strategies!