Home Prices in Kansas City

The Kansas City real estate market is heating up, and it's not just home prices; it's also inflation, mortgage rates, fears of a recession, and how quickly homes are selling. This post breaks it all down, and if you stick around to the end, we'll cover the suburbs in Kansas City where homes are selling the fastest and how much over the asking price they're selling for.

According to an article from FastCompany.com and data from Zillow's Home Value Index, not just active listings or recently sold homes, but the Zestimate data for the entire Kansas City metro, the one-month price increase from March 2024 to April 2024 is 1.36%. While this might not seem significant over a year, a 1.36% increase in just one month is substantial. This increase is largely a seasonal trend, reflecting the high activity in the current market.

Kansas City Housing Market Data Breakdown

Looking at the housing market data for the Kansas City metro area, several key metrics stand out:

• Month Supply: Currently at 1.9, indicating how many months it would take for all current homes on the market to sell out at the current sales pace. A balanced market typically has a six-month supply.
• Days on Market: Trending upwards, but this varies significantly in different suburbs.
• Average Sales Price: Data from April 2024 shows a nearly 5% year-over-year increase.
• Closed Sales: Up by almost 10%.
• Homes Under Contract: Increased by about 3%.
• Inventory: Slightly more homes available, with a 3.8% increase compared to last year.

Buyer and Seller Trends

There are more real estate transactions currently happening, indicating increased demand. Sellers are more willing to enter the market, even with higher mortgage rates, likely due to the competitive nature of the market and favorable selling conditions.

Mortgage Rates

Current Mortgage Rates

As of Wednesday, May 22, the current mortgage rates are:

• Conventional Loan: 7.33%
• FHA Loan: 6.85%
• 15-Year Loan: 6.74%

These rates have declined slightly over the past week but are expected to remain elevated through most of 2024, as indicated by sources such as Yahoo.com and Fannie Mae. High mortgage rates are expected to persist until inflation cools to around 2%.

Impact on Homebuyers

The cost of homeownership has grown, and it now almost takes a six-figure income to afford the typical home in the United States. In Kansas City, the most competitive price bracket for homes is between $200,000 and $400,000, driven by high demand, especially among first-time homebuyers.

How Fast Homes in Kansas City Are Selling

Fastest-Selling Suburbs

Using MLS data, we can see the suburbs in Kansas City where homes are selling the fastest and how much over the asking price they are selling for. Here are some highlights:

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In these fast-selling suburbs, homes often go live on Thursday or Friday and are under contract by the weekend, indicating a highly competitive market.

Close Price to List Price Ratio

Certain areas show homes selling well over the asking price:

• Independence: 103.5% of asking price
• Shawnee and Roland Park: 105% of asking price
• Mission, Kansas: 105% of asking price

Strategy for Buyers

In highly competitive areas where homes sell quickly and over the asking price, it might be best to look for alternatives in less competitive nearby areas. Analyzing showing data and identifying less competitive price brackets can help find opportunities where buyers can save money and avoid bidding wars.

Personalized Homebuyer Analysis

We can perform a detailed analysis for you, specific to the areas and price points you're interested in. This helps identify less competitive markets and potential savings, ensuring you get the best value for your money.

https://info.kcsuburbs.com/buyer-analysis