I have been asked on several different occasions what I think about housing and the direction it's headed. I find most real estate agents will tell you what you need to here so they can get a sale; but that's not the type of agent anyone should be working with. So what is my housing prediction?
If you were to follow what the so called experts, like the National Association of Realtors, had to say last year about the housing market and purchased a home, you're not very happy today. Your new investment would have lost you roughly 8% in value. In other words, if you purchased a home for $200,000 last year (2010), it would now be worth $168,000. This means it cost you $1,333 per month to own your home and you haven't even made any mortgage payments yet. If you are one of those people who bought last year I'm afraid the news is not going to get any better moving forward.
One day I hope a get to write some good news about Kansas homes sales, but for now I have to tell you the news without trying to cover up how bad the real estate market is. Here is an example of a cover up – According to Jamie Holt with Coldwell Banker Plaza Real Estate in Wichita Kansas and President of the Kansas Association of Realtors (KAR) "Sales in April were actually up 5.2% compared to the same month in 2009". He also said "This is a more meaningful comparison, because last year's figures were so skewed by the home buyer tax credit. All told, this number reflects a solid start to the selling season."