Today’s buyers and sellers face unique challenges, and it’s up to your trusted real estate professional to guide you through them. To help with this we present this real estate update, which gives relevant information to help you understand what’s going on in your region and at the national level. Dive in and learn all you need to know about the current state of the market. 


State of the Real Estate Market

From buyers to sellers, to agents to lenders, the real estate market has had its shares of ups and downs this past year. With shifts in mortgage rates and inflation, the market continues to change. Despite tight inventory, buyers are starting to see less competition for homes. For sellers who price their home right, they’ll continue to be competitive. 


Existing Home Sales: A Historical Perspective

Home sales have risen steadily since the Great Recession of 2008.

  • Existing Housing Inventory:
    1.22 million -0.8% Year-Over-Year 
  • New Home Starts/ Completions:
    1.3 million/1.4 million Year-Over-Year 
  • Projected number of single-family home new builds for 2023:
    Over 1.2 million 
  • Volatile lumber prices have added:
    $14,345 to the average price of a new single-family home. 

 

National Market Snapshot 

As mortgage rates continue to shift, so does the migration trend out of cities to the suburbs and more rural areas. Home prices are approximately 50% less expensive in rural areas and 20% less expensive in suburbs. 

 

Median Home Prices Projected to Continue Rising 

The median home price is projected to keep rising. By 2030, experts believe the median price will be nearly $400,000.

 

Regional Trends

 

Mortgage Rates 

Homebuyers have faced fluctuating mortgage rates, which have doubled from a year ago. Ninety-three percent of homeowners currently have a fixed-rate mortgage. 

Fixed-Rate Mortgage Comparisons 

November 2022 National Median Home Price: 379,100

  • 30-Year Fixed-Rate Mortgage
    Average Down Payment: 17%
    Average Mortgage Rate: 6.84% 
    Monthly Payment: $2,059 
  • 15-Year Fixed-Rate Mortgage 
    Average Down Payment: 17%
    Average Mortgage Rate: 6.22% 
    Monthly Payment: $2,294 
  • 10-Year Fixed-Rate Mortgage 
    Average Down Payment: 17%
    Average Mortgage Rate: 6.35% 
    Monthly Payment: $2,715 

 

Buyer Profile

In 2023, buyers may have a bit more flexibility when it comes to making concessions such as forgoing home inspections. But, with inventory still very tight, buyers should ensure everything is in place, including financing, so they are able to make an offer when they see a home they are seriously considering. 

Challenges for Buyers 

  • Low inventory. 
  • High prices. 
  • Mortgage rates. 
  • Substantial down payment. 

Buyers Are Looking For: 

  • Quality of neighborhoods. 
  • Close to family and friends. 
  • Square footage that is flexible for use. 
  • Move-in ready homes. 

Typical Down Payments 

  • First-Time Buyers: 6% 
  • Repeat Buyers: 17% 

 

Seller Profile

A tight inventory means it is still a seller’s market. Sellers may have to drop their prices and make concessions; however, houses priced right will sell. 

Selling Process 

  • For recently sold homes, the median sales price was 100% of the listing price. 
  • 28% of all sellers reduced their asking price at least once. 
  • 94% were able to sell when they wanted. 
  • 75% of all sellers were repeat sellers. 

Top Reasons for Selling 

  • A desire to live closer to friends and family: 21% 
  • Home was too small: 10% 
  • Change in family situation: 9% 

 

Homeownership: The Best Investment 

Eighty-eight percent of buyers view owning a home as a good investment. 

Value of Owning a Home 

  • A fixed-rate mortgage offers stability for month-to-month payments. 
  • Homes appreciate in value faster than inflation. 
  • Net worth increases as equity builds. 
  • You may be able to deduct the interest you pay on your mortgage, insurance premiums and property taxes. (Consult your tax advisor for more information.) 
  • Opportunity to lay down roots in a community. 

Owning a house gives you control over the property and lets you add the fixtures, amenities and cosmetic changes you want without asking a landlord. 

 

State of the Agent

The use of technology continues to increase in popularity, but there is still an emphasis on real-life interactions. Ultimately, skilled, supportive agents are the key to homebuyers and sellers achieving their real estate goals. 

Buyers Want their Agent to:

  • Find the right home to purchase: 49% 
  • Negotiate the terms of sale: 13% 
  • Help with the price negotiations: 11% 
  • Buyers looked for agents who were honest and had integrity, responsive and had knowledge of the purchase process and the real estate market. 

Sellers Want Their Agent To: 

  • Price their home competitively: 23% 
  • Market their home: 23% 
  • Sell their home within a specific timeframe: 13% 
  • The most important factors to sellers when choosing an agent were reputation, trustworthiness and honesty. 

 

Questions?

We can help you understand the market in your neighborhood, or any place in the Kansas City Metro that you’d like to be. Call or email Agent, Miles Rost today! 

Mobile: 913-219-0638 | Office: 913-451-4888

 

All stats and information courtesy of BRIAN BUFFINI’S REAL ESTATE REPORT, US EDITION, 1ST BIANNUAL 2023 – Buffini & Company.


 

MORE INFORMATION FOR HOME BUYERS

Get our home buying guide & checklist, learn about the benefits of homeownership, and read more blog posts for buyers on our Buyer Resources page. {{ HERE }}

 

MORE INFORMATION FOR HOME SELLERS

Looking for tips and ideas that will help sell your home? You can read more on our Seller Resources page, where we offer our best advice for homeowners considering placing their home on the market. {{ HERE }}