The Kansas City Real Estate Market
Kansas City Real Estate Market
The Kansas City real estate market is extremely competitive and hot right now. Surprisingly, it has been on an upward trend even with the COVID-19 pandemic. Over the last year, the average sales price has increased nearly 20% with no signs of it slowing down as long as the supply and demand continue in an upward trajectory. The rent rates have also increased around 14% as well.
According to FHFA HPI Top 100 Metro Area Rankings, Kansas City is ranked 78. The average price of a home in the Kansas City area is $308,179, with the national median right at $408,100. As the numbers above show, the housing market in Kansas City is one of the most affordable in the nation. This makes investment funds and cash buyers from around the country very enticed to purchase rental properties for their portfolio. This is further proven by showing just how many rentals are owned in the Kansas City metro area, with just under 50% of the population split between renting and owning. This is a mindblowing statistic when you take into consideration there are about 925,000 housing units.
For Buyers in the Kansas City Area:
The market is incredibly competitive at the moment so if you’re seriously looking you should be prepared to look at a listing and make a serious offer on the first day it hits the market. You’ll even have to consider other ways of buying instead of the traditional route of a realtor. Interest rates have made many people consider buying during the pandemic. Freddie Mac reported the average 30-year fixed mortgage rate was 2.84% in August 2021. The challenge for buyers will be getting qualified for a loan. If you’ve been laid off, it’s going to be harder to get approved.
For Sellers in the Kansas City Area:
About 6 months ago there was less than a month of supply of properties for sale at a given time, this had created a market that greatly favors sellers. However, the market is starting to cool down so the bidding wars we were seeing in the spring have started to simmer down. However, it’s still a great time to sell. We can say that it is a strong seller's market and there won't be any major dip in home values for the foreseeable future. The tight Kansas City real estate market here mirrors wider.
The Kansas City market is hotter than it has ever been. Whether you are looking to sell or buy, the city has a ton of growth happening and it is definitely worth looking into.
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