THE INDEXKC- KC METRO MARKET UPDATE
Weekly KC Metro Market Update
As interest rates rise we’ve seen the impact on consumer behavior….Homes listed jumped up 24% as inventory begins to sit a bit and days on market increase as well. Buyers are stilll writing strong offers on well-cared for properties. Properties that require updating and TLC are sitting longer, reflecting the more balanced nature of the market.
Buyers, take advantage of growing inventory levels, write your offers while competition is slim and you have the opportunity to negotiate. When interest rates fall, and they will, you’ll be able to refinance your purchase down to a lower interest rate.
There is still competition, just a less of it. Multiple offers might still take place, but we are seeing fewer offers within those negotiations….As a point of reference, last summer you may have seen 5-7 offers, while this fall you may see 2-3 offers in situations that are similar. At the same time, we’ll see far fewer appraisal gap waivers and inspection waivers. Adjustable rate mortgages are coming back into favor as rates rise.
Sellers, as rates ( and inventories) rise, condition of the home is the primary driveer of perceived value as consumers will no longer be required to pay top dollar for properties requiring repairs and updates. Bring your home to market with the mindset that success is delivering a great home to a willing and able buyer, instead of last year’s mindset that “low inventory will require a consumer to choose my home.”.
Kansas City sits on Missouri’s western edge, straddling the border with Kansas. It’s known for its barbecue, jazz heritage and fountains. Downtown, the American Jazz Museum shares a building with the Negro Leagues Baseball Museum in the historic 18th & Vine Jazz District. The Nelson-Atkins Museum of Art, with giant shuttlecocks out front, houses nearly 40,000 works of art, from ancient to contemporary collections. (Google)
If you’ve got questions regarding the impact of the shift on your search or the value of your home, we’ve got answers!