Average price for a new home in Johnson County? $558,000 as property values rise
As buyers face a bidding war over Johnson County’s limited housing inventory, new homes are selling for $558,000 on average, according to a county appraiser report.
Factor in existing homes as well, and the average sales price of a single-family home was $394,000 in 2020, the appraiser said.
Last month alone, according to the Kansas City Regional Association of Realtors, the average sales price soared to more than $411,000.
“This year, we just don’t have the inventory,” said Marti Lilja, a real estate agent with Keller Williams, adding that the pandemic delayed a lot of construction. “We’re so behind. There are so many buyers who still need houses, it’s going to take a while before everything gets caught up.”
Lilja said her buyers include first-time homeowners, seniors looking for their retirement homes, plus families who have sought more office space and larger yards during the pandemic — all of whom have had to navigate Johnson County’s booming market with a shrinking number of choices.
She has seen many homes sell within four or five days.
“Even with the pandemic, the demand to live in Johnson County is still very strong,” Johnson County Appraiser Beau Boisvert said at a recent Board of Commissioners meeting. “This county is unique compared to the immediate area.”
In February, Johnson County’s average sales price for new and existing homes was $411,034, up 21% over February 2020, according to the Kansas City Regional Association of Realtors. That’s more than double the average $191,839 in Wyandotte County and far above Jackson County’s $248,549 in February.
Price points vary widely throughout the county. According to the appraiser’s report, Edgerton saw the lowest single-family home sales price, at an average of $193,000 in 2020, an 18% increase from the year before. It was followed by Merriam at $227,000. Homes sold for an average of $428,000 in Overland Park. And the highest price was in Mission Hills, with an average of $1.3 million.
Meanwhile, the majority of homeowners in Johnson County will see yet another increase in their home appraisals this year. Homeowners are receiving county appraisal notices in the mail, and 70% can expect an increase — down from the 87% whose home values jumped last year. About 17.5% of residents will see their homes’ appraised values drop.
Those new appraisals will affect 2021 tax bills that go out late in the year.
In Mission, Overland Park, Olathe, Roeland Park and Prairie Village, the county reported that average home values grew between 4% and 7%. The average appraised value jumped by more than 10% in De Soto, Merriam and Spring Hill.
Johnson County Chairman Ed Eilert said in late February that as property values continue to surge, he believes the county should “minimize any increase in property taxes” as officials consider next year’s budget.
“Once again our housing market is very strong,” Eilert said. “That has an impact on the amount of property taxes that residential property has to pay. So I think we need to keep that in mind as we go through the budget, also with many people struggling with the pandemic.”
But residents continue to voice concerns that rising home values, accompanied by higher property taxes, have made it increasingly difficult to afford life in Johnson County, especially for young families, low- and mid-income workers and seniors wanting to age in place.
And Lilja said the lack of options is stopping some homeowners from moving out of their homes, making it all the more difficult for buyers looking for a more affordable option.
“It’s a great time to sell. But a lot of sellers are worried to put their houses on the market because they have nowhere to go next,” she said. “There are a lot of people on the fence with inventory so limited.”
This story was originally published March 10, 2021 at 5:00 AM.
