As we start a new year, the real estate market is once again shifting. Many experts project that rates will finally start to decline. When that happens, it’s anticipated that there will be an influx of buyers and sellers ready to enter the market.
This month we’re sharing information on the state of the housing market, historical interest rates, and some well-researched stats on why the typical homeowner moves.
What’s Ahead for the Housing Market?
When rates start to decline there will be an influx of buyers and sellers. Housing demand will be fueled by the largest generation of potential homebuyers ever—the millennials. Both millennials and baby boomers have a big potential impact on the market! This is important information for both home buyers and sellers who are considering entering the real estate market in Kansas City.
What are the Top Reasons People Move?
The number one reason is to be closer to family. That’s not surprising, especially after so many of us were apart during the pandemic years.
Coming in close second are the decisions made during the various life stages. Small homes turn into bigger homes, and then we come back to smaller homes as we move through marriage, children, the empty nest, and into retirement. We’re here to help you through every step of your future home sale or purchase. Please feel free to reach out any time!
| • To be closer to family and friends. | • Lots of equity, lots of choices. |
| • Need more space. | • Legacy real estate. |
| • Love their rate, but not their house. | • Time to downsize. |
| • Want a better neighborhood. | • Out-of-area relocation. |
| • Want a vacation home. | • Change of work or life. |
Historical Mortgage Rates
As the market begins to pick up this year, this graph is a great reminder to keep perspective on how much mortgage rates have fluctuated since the early 1970s. As rates begin to drop and stabilize this year, buyers and sellers who have been reluctant to abandon their current low rates can breathe a sigh of relief!
Who’s Eager to Buy?
- Renters – There are nearly 3 million households making $150,000 a year who currently rent.
- Millennials – With 35 being the average age of first-time buyers, this group is poised to be the biggest generation of potential homebuyers.
- Current homeowners – Many have wanted to downsize or move for other reasons but were waiting for rates to stabilize.
We know the market can be confusing, but we are here to offer clear, concise information you can trust. Feel free to contact us and we will answer any questions you may have.
Email Miles Rost | Call us! 913-451-4888
