Homes on the market in the Kansas City metro area are selling for an average of 96.7 percent of the original list price. That’s a 3.0 percent decrease from December 2021. Days on the market increased slightly to 37 days in December—compared to 25 days just one short year ago. Supply from the same time last year increased 37.5 percent for existing homes, and increased 84.8 percent for new construction homes, for an increase of 60.0 percent on all of the residential supply combined. That leaves KC with a 1.6 months supply of homes on the market.
With that said, there is a greater quantity of homes available now compared to the fall season last year. Looking at the total number of homes on the market in 2021, there were 5,135 in October, 4,641 in November, and 3,958 in December. More recently, the December 2022 home inventory was at 5,208! We have seen inventory gradually increase this year, and we are hopeful that next spring will bring even more homes on the market in Kansas City.
The majority of the Kansas City metro is still in a seller’s market, but not all areas are alike. Exact data varies from county to county, and for different home prices. Always consult with your Agent for personalized information! Email Miles Rost or Nicole Laufenberg with questions about the market in your current or future neighborhood. You can also call us at 913-451-4888.
NATIONAL NEWS
2022 was a turbulent year for the US housing market, as inflation, soaring interest rates, and elevated sales prices combined to cause a slowdown nationwide. Affordability challenges continue to limit market activity, with pending home sales and existing-home sales down month-over-month and falling 37.8% and 35.4% year-over-year, respectively, according to the National Association of REALTORS® (NAR). Higher mortgage rates are also impacting prospective sellers, many of whom have locked in historically low rates and have chosen to wait until market conditions improve before selling their home.
Economists predict sales will continue to slow and housing prices will soften in many markets over the next 12 months, with larger price declines projected in more expensive areas. However, national inventory shortages will likely keep prices from dropping too much, as buyer demand continues to outpace supply, which remains limited at 3.3 months, according to NAR. Even if prices fall, many prospective buyers will find it difficult to afford a home in 2023, as higher rates have diminished purchasing power, adding hundreds of dollars to monthly mortgage payments.
In the Kansas City metro area, the current average home sales price is $336,102, and the median is $286,008, which hits well below the current national median of $454,900, keeping homeownership affordable in Kansas City.
All stats and information courtesy of KCRAR – the Kansas City Regional Association of Realtors®, except the national median home sale price, which is courtesy of the Federal Reserve Economic Data.
