With buyer demand high and mortgage interest rates at an all-time low, the Kansas City real estate market is maintaining a steady pace of growth. Despite a substantial inventory shortfall, pending sales across the Kansas City metro continue to outperform those of 2015 by significant margins.
Compared to this time last year, the number of available properties for sale is 38 percent lower. In fact, there are fewer than 7,000 homes available for sale throughout the Kansas City area according the latest Heartland MLS date. For perspective, in a balanced market in our area the typical number of available homes is around 14,000.
The high level of demand combined with the low supply of available homes has created a more fast-paced market climate than in recent years, with homes selling faster and often with more competition among interested buyers.
Sellers are also faced with unique challenges as a result of heightened demand, including the handling of multiple offers and the timing of the sale and subsequent purchase. The expertise, tools and advice of a Realtor proves to be essential to successfully navigating these market conditions for buyers and sellers alike.
Homeowners are most definitely taking notice of the clear benefits of selling in our market and this probably will lead to an uptick in new listings this summer. While Kansas City home prices remain conservative compared to many other areas of the United States, the average sale price for a home in the Kansas City area is trending upward, and average prices are roughly 5 percent higher than this time last year.
Kansas City isn’t the only city with a hot housing market. According to the National Association of Realtors, nationally, existing home sales are at a nine-year high.
“This spring’s sustained period of ultra-low mortgage rates has certainly been a worthy incentive to buy a home, but the primary driver in the increase in sales is more homeowners realizing the equity they’ve accumulated in recent years and finally deciding to trade up or downsize,” says Lawrence Yun, NAR’s chief economist.
Potential first time buyers are also entering the market in hopes of capitalizing on low rates. In the majority of cases, current renters are finding that purchasing a home is more financially advantageous than renting. This is especially true when looking at the rising rent prices across the nation. A Realtor can help buyers access their individual circumstances.
Christian Zarif is the 2016 President of the Kansas City Regional Association of Realtors