To understand today’s complex Kansas City real estate market, it is critical to have a local, trusted advisor on your side – for more reasons than you may think.
In real estate today, there are essentially three different price points in the market: the starter-home market, the middle-home market, and the premium or luxury market. Each one is unique, and depending on the city, the price point and area of town in these categories will vary.
For example, at the end of October 2019 the Kansas City market still had less than 3 months inventory. However, when you look at the market over the $500,000 mark around the city, the picture is very different.
This market varies by price, and these homes are typically purchased by first-time home buyers or investors looking to flip them for a profit. In Kansas City the starter home market offers less than 2 months inventory. That means there aren’t enough homes on the lower end of the market for the number of people who want to buy them. A low supply like this generally increases competition, drives bidding wars, and sets up an environment where homes sell above the listing price.
“The desire for affordability continues to push down the inventory for homes listed for less than $200,000.00.”
In Kansas City, we consider the $200K – $500K the middle of the market. This segment is often thought of as the move-up market. Typically, the buyer in this market is moving up to a larger, more custom home with more features, all coming at a higher price. Generally, throughout Kansas City, this market remains active and favoring sellers with 2.5 months of inventory. Across the country, this market is looking more balanced than the lower end of the market, meaning it has closer to a 6-month supply of inventory for sale. Bottom line is that Kansas City remains to have a pent up demand for homes under $500,000.
Premium & Luxury Home Market
This is the top end of the market with larger homes that have even more custom features and upgrades. Nationwide, this market is growing in the number of homes for sale and the same is true for Kansas City. When you look at the micro markets around the city you’ll find inventory rates from 6 months in Johnson County – where most of the $500K market exists – to 11 months inventory in the Clay/Platte markets.
Today, there are more homes available in the premium and luxury space, leading to more of a buyer’s market at this end. So for the first time in years, the mid-market has tremendous opportunity to not just get a deal on a move up home BUT interest rates continue to be in your favor so you can buy even more home than you could have in at least the last 5 years.
Depending on the segment of the market and the price point you’re looking at, you’re going to need the advice of a true local market expert. Let’s get together to help you strategize and seize opportunity in your market.