A new analysis of housing data from the Zillow Group Inc. conducted by the Business Journals shows Kansas City is still one of the most popular markets for home buyers, despite the recent cooling off as rates creep back up. Among the 75 U.S. large metropolitan markets analyzed, the Kansas City metro ranks 11th for housing momentum. The Business Journal used a formula to calculate which markets are surging, applying weight to price changes over three periods. Kansas City's median home values were up 1%, 9%, and 17% for the past month, six months, and one year, respectively.
Like many markets in the U.S., much of Kansas City's home value increases can be attributed to a lack of inventory. According to the Kansas City Regional Association of Realtors, for September 2021, inventory is down 19.5%, supply is down 25%, and days on the market are down 45.9% versus the prior year. Kansas City sellers were also receiving 100.1% of the original list price in September.
Matt Kesler, a realtor with Platinum Realty in Kansas City, says he's first-hand witnessed the effects of low inventory. "I have seen buyers offering well above the asking price, waiving inspections, and waiving appraisal contingencies (paying more than the appraised value). I've had multiple offers on every listing I've sold this year. Seventeen offers on one house, all of them over asking."
Kesler adds that buyers shouldn't be daunted. "It's a great time to sell a home but also a good time to buy. Although it may be challenging for buyers, the benefits outweigh the struggles. Prices will continue to go up, and so will interest rates."
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