Homes on the market in the Kansas City metro area are selling for an average of 97.3 percent of the original list price. That’s a 3.2 percent decrease from February 2022. Days on the market increased slightly to 46 days in February—compared to 31 days just one short year ago. Supply from the same time last year increased 28.6 percent for existing homes, and increased 109.7 percent for new construction homes, for an increase of 55.6 percent on all of the residential supply combined. That leaves KC with a 1.4 months supply of homes on the market.
Currently, there are more homes available in our market now than compared to the winter season last year. Looking at the total number of homes on the market a year ago, there were 3,958 in December of 2021, 3,584 in January, and 3,515 in February of 2022. More recently, the February 2023 home inventory was at 4,486! We have seen inventory gradually increase in the past year, and we are hopeful that this coming spring will bring moderating interest rates and 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
In its continued effort to curb inflation, the Federal Reserve raised its benchmark interest rate in February by a quarter-percentage point to 4.50% – 4.75%, its 8th rate hike since March of last year, when the interest rate was nearly zero. Mortgage interest rates have dipped slightly from their peak last fall, leading pending sales to increase 8.1% month-to-month as of last measure, but affordability constraints continue to limit homebuyer activity overall, with existing-home sales declining for the twelfth consecutive month, according to the National Association of Realtors® (NAR).
With buyer demand down from peak levels, home price growth has continued to slow nationwide, although prices remain up from a year ago. Sellers have been increasingly cutting prices and offering sales incentives in an attempt to attract buyers, who have continued to struggle with affordability challenges this winter. The slight decline in mortgage rates earlier this year convinced some buyers to come off the sidelines, but with rates ticking up again in recent weeks, buyers are once again pulling back, causing sales activity to remain down heading into spring.
In the Kansas City metro area, the current average home sales price is $315,387, and the median is $265,000, which hits well below the current national median of $467,700, 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.
