It will be late January before MLS reports the final numbers for 2012 but all indications are that the Kansas City real estate market has definitely gained strength with sales and average sales prices up from 2011. There is much talk about how fiscal cliffs, looming budget deficits and politics will impact interest rates. There are 3 factors that impact the value, or lack thereof, in a real estate purchase: inventory levels, prices, and interest rates. Perhaps the best deals as far as inventory, prices and rates were had in 2011 and 2012 but the last factor (the cost of money) continues to play a historic part in today’s market. Buying power remains strong at current rates however, even a 1% increase on a $200,000 home could impact a monthly payment by almost $170.
If you know someone who is thinking about taking advantage of today’s interest rates through a purchase of a home, call us today and we will be glad to help them.