Kansas City’s Resilient Housing Market
The resilience of Kansas City cannot be understated. One place it can be observed is in the housing market. In what could have been a dampening season, realty in Kansas City thrived. Both selling prices and speed of sales have increased this year, with median home prices rising by 16.9%. This is good news for Kansas City homeowners. With an annual appreciation of 6.95%, those holding onto realty at this time are looking at a growing investment.
2021 Kansas City Housing Trends
No one can deny it’s been a tough year, and Kansas City is no exception. Yet we can celebrate a fast recovery in the housing market. While home purchases dramatically decreased in April of 2020, by May buyers were searching for homes again. However, there were not as many to be found. Sellers became more reluctant to part with their properties.
At the same time, banks put their foot on the brake pedals for lending mortgages. This has led to a smaller inventory and more competitive pricing. The monthly inventory from August 2019 to August 2020 was cut in half. It dropped from a 2.8-month supply of homes to a 1.4-month inventory. With eager buyers, homes are selling quicker. In example, the average days on market decreased from 52 in January of this year, to 29 days in July. Many homes go under pending sale within three days of being listed.
Kansas City Real Estate Investing
While in 2019 the Kansas City housing market was considered a “cool market,” this year the market is “sizzling hot.” As a result, a significant amount of investment realty is taking place. While prices are rising, real estate is still more affordable in Kansas City than many places in the nation. With the trends we see now, and the low impact from this year’s events, real estate investors are getting involved quickly.
Buying a Home in Kansas City in 2021
Competition from investors, along with harder-to-come-by mortgages, make the 2021 Kansas City housing market a tough one for home buyers. If you are looking to buy in the coming year, here are helpful steps to take:
- Acquire solid pre-qualification letter from the bank. If you’re finding it difficult to qualify, ask your mortgage lender exactly what steps you can take. They can help you create a clear path toward eligibility and tell you what debts need to be paid down by what percentage, or what income must increase to what level, or what other steps can be taken to get you across the qualification line.
- Watch the market closely. For instance, you can work with a realtor who has access to houses not yet on the MLS (Multiple Listing Service). They can provide information on homes before they’re listed.
- Be willing to compromise on non-essentials. In example, have a list of needs and wants. Further, be ready to offer on a home that may not cross off every item on your want list, but will make for a great home and investment.
- Prepare yourself to make a very agreeable offer the day a house hits the market.
- Remember: with the trends of appreciation value in Kansas City homes, every sound home purchase can be a strong investment. This is seen in the security of home values growing quickly while demand skyrockets.
What Not to Compromise On
As mentioned, you might need to compromise on small amenities for the sake of making a home purchase with competition being what it is. However, if you’re looking to buy a home in Kansas City, there is something you should never compromise on: a sound roof. If the home you’re preparing to offer on has a compromised roof, it holds the potential to put a halt to your home purchase as it will most likely not pass inspection. This is not all bad news, as you can work into the offer that the home’s roof needs to be repaired, or the funds for the roof need to be worked into the home’s purchase price.
We see a whole lot of hail in Kansas City, and many homeowners are not aware that their roof has hail damage, or that insurance may compensate for the cost of a new roof. Whether you are selling or buying, if you are concerned over the roof’s age, or if it is in an area that has been hit by hail in the past two years, call us at (816) 601-0117 to schedule a free inspection.