Demand for resale property continues to be strong in the Kansas City area real estate market. In fact, more people are looking for houses than listed. That’s why new construction remains the answer for buyers looking for a home they can’t find on the resale market. If you’re a seller, now is the time to put your home on the market!
July Kansas City Market Report
In addition to the inventory shortage, there’s concern about home prices and perhaps another bubble. The Kansas City Regional Association of Realtors points out that the common markers that caused the last housing cooldown are once again happening. Wages are up, but they’re not going up as quickly as home prices. So, affordability is a concern for some buyers.
However, the housing market is much different now than it was 10 years ago when the housing bubble last burst.
So, how much are prices up? In the Kansas City region, they’re up 7-percent from this time last year for existing homes. The average sales price is $228,440 compared with $213,552 in 2017. That’s great news for sellers because there really hasn’t been a better time to sell for a number of reasons far beyond home prices!
For new construction, prices are up just under 2-percent this year compared to last. Prices were $385,173 in 2017, and they’re now $392,277.
While prices are up, it’s important to remember that prices did not cause the market downturn last time. It was bad lending! So, I just like to keep that in mind when we hear talk about this so-called bubble or market shift. It’s impossible to predict the future, but that’s one factor that’s missing in this market.
That’s why first-time homebuyer programs are critical, and there are several options in the Kansas City area. Buyers can purchase a home even if they do not have a 20-percent down payment.
How To Get Down Payment Assistance in Kansas City
Here’s a quick look at the Kansas City real estate market this past month.
Selling Your Home
With talk of a housing bubble, and a possible shift in the real estate market sometime in the future, sellers need to strongly think about selling now! Even if you’re buying another home, like most sellers, you’ll save money selling now. That’s because interest rates are another variable in all of this. They’re expected to continue rising which means you’ll pay more for your next home over the life of it.
Use our FREE, no obligation mortgage calculator to see how much mortgage rates affect your payment. It’s probably more than you think. For example, a loan of $250,000 at today’s rate of 4.625 is $1285 a month. If you lock in at 5-percent, the monthly payment is $1342. It may not seem like much each month, but look at how it adds up. Over the course of 30 years, that’s a difference of more than $20,000. Think of the home improvements you can make with your house for $20,000!
So, take advantage of these higher sale prices before interest rates go up more. In the Kansas City region, the average home is only on the market for about a month, and sellers are getting 97.9% of their list price in Kansas City.
That’s why list prices are so important. The better the price when it lists, the quicker it sells.
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Buying a Home in Kansas City
Inventory is still at critical levels, with just a 2.5 month supply of homes. A healthy market is six months supply. So, it’s more difficult for buyers to find the home of their dreams in a seller’s market.
An experienced real estate agent is the key to finding what you want in a tight market. They can unlock doors through their vast connection of sources and homeowners.
New construction is another option to consider. With more inventory than the resale market, you have more choices. You can build from the ground up or buy a property already under construction and put the finishing touches on it. We have communities with homes that can be ready in 30 or 60 days.
We’re also working with builders in Stone Canyon and Sonora Valley in Blue Springs, and Rosewood Hills in Grain Valley. Each community has something different to offer buyers. Some home prices start in the low to mid $200’s.
Kansas City Fall Parade of Homes
The Kansas City Fall Parade of Homes is a great time to see what your money can buy and also get a glimpse at the latest housing trends. It runs from September 22 through October 7th.
Here are some tips to tour the Fall Parade of Homes like a pro!