4 Reasons Kansas City Is Still In A Sellers Market
Inventory numbers are up across the Kansas City Metro. Mortgage rates continue to go up. So why are we still seeing multiple competing offers on homes and fast sales? We’ve got 4 reasons for you.
1. Mortgage Rates Will Continue To Climb
It’s all over the news: mortgage rates are continuing to rise. At the time of writing this, the average rate in Kansas is 7.319% for a $300,000 home, and that’s if you have a credit score in the low 700s and $30,000 for a down payment. For Missouri that rate is slightly higher at 7.382%. The Fed plans to continue raising the interest rate through the end of the year. Since many people know that rates will go higher, they’re buying now with plans to refinance once they come back down.
2. Homes Are Being Listed Below Average Sale Price
Any time properties are listed below the average sales price of their community, they tend to bring in more offers and sell quicker than those listed at or above the average list price. In Kansas City for instance, the average selling price for a home is $342,000. Homes listed below that will likely sell much quicker and with more offers than homes listed above $342,000.
3. Micro Market Availability
No matter where you live, there are subdivisions and neighborhoods that just sell faster than neighboring areas. This can be for a number of reasons, but usually includes families wanting to live near well-performing schools or have access to desirable HOA amenities such as a pool, basketball or tennis court, provided maintenance, etc. Simply put, when a home is listed in one of these desirable micro markets, multiple offers roll in quickly.
4. Preferred Floor Plans
The most popular floor plan in the Kansas City area is currently a reverse 1.5 story home. This layout includes the master bedroom and at least one other bedroom on one level with 1 or 2 other bedrooms on the lower level. A lot of these homes also feature a finished walkout basement. Essentially, everything you need is on one floor, much like a ranch, but you still get some separation due to the multiple levels.
Even though the typical market drivers like higher interest rates and increased inventory numbers would normally signal a slowing market, we’re just not seeing that yet. However, the number of days on market has increased to 51 days from just two days one year ago. While things have slowed down, due to the 4 reasons listed above we are still seeing multiple offers and quick sales…when the price, location, and layout are right.
If you’ve got questions regarding the impact of the shift on your search or the value of your home, we’ve got answers!
Life In Style, the bi-monthly publication from Team Real Estate, is dedicated to helping homeowners make smarter decisions about their homes and lifestyle. It features original news, commentary, tips, and analysis from leading industry experts. To be considered for inclusion in future episodes, email email@example.com.