How much does the average house cost in Kansas City, Missouri? What can you expect to pay and what type of house can you get for that price?
As one of the top local real estate teams in Kansas City, we decided to dive into the data and answer this question for you!
Buckle in as we share our data with you! Let’s get started!
The Average House Price In Kansas City (2021)
The average house price in Kansas City, MO, in 2021 is between $190,000-$250,000. For this price range, you can expect a 1,600+ sq. ft. home with two bathrooms, three bedrooms, an updated kitchen and a decent-sized backyard.
Houses That Sold in KCMO (2021)
Below is a list of KCMO homes that have sold in 2021. While there are thousands more like this, the table below gives you a sample size of what activity is happening out there.
Sources: Redfin.com & Dani Beyer Real Estate
Sold Period: Q1, 2021
From the table above, if we combine the square footage of these sold homes, that leaves us with a 2,104 sq. ft. average. Now let’s combine the sold prices, which is an average of $171,687. That’s already below the average home price we gave you above, which is nice!
Finally, let’s divide the average cost by the average square footage. That gets us a per square footage price of around $81.60! That is so affordable compared to the rest of the country. In 2019 alone, the average price for a new single-family house was $118.91 per square foot of floor space.
Honestly, a $170K house for about 2K square feet sounds like a deal to us! That’s why Kansas City is a great place to sell your home AND buy a home!
If you’re looking to purchase a home in Kansas City, MO, there are hundreds of neighborhoods to review and locations to choose from. It can be overwhelming!
On the other side, if you’re curious about selling your home, we recommend finding your home’s true market value first before you make any step forward in the home selling process.
Continue reading and we’ll share more with you about the KC housing market along with other data to help you make an informed decision.
Changes in The Kansas City Housing Market (What It Means for You)
Compared to previous years, home prices in Kansas City have risen a significant amount. In the last year alone they have increased between 6%-15% and are expected to continue to grow. This price increase differs from the average year-over-year home value increase which is typically 2%-5%. A big difference!
In our in-depth 2021 real estate market forecast post, we shared that we see every major economic indicator pointing to increasing home prices. Why? Because inventory levels remain low. Meaning, there is not enough supply as there is demand.
Why is inventory low? A few reasons:
- The Midwest is seeing an influx of people from the west coast (read our blog here for our thoughts on that).
- Now more than ever, there is so much buyer demand for a home office, space to home school, workout rooms, recreation space outside and another bedroom (for in-laws).
- Kansas City is and will continue to grow. In 2017 the population broke two million.
What do these housing market changes in Kansas City mean for you? There are two major things.
Selling Your Home in Kansas City
If you ever wanted to sell your home or are looking to make some extra cash, this is the time to do it! Sell your home in KC. It’s honestly one of the best times we’ve seen in history.
With so little inventory, the potential for bidding wars for buyers is at an all-time high. This means your home can sell for way more than you ever imagined!
We dove into our data and found some crazy numbers you need to see. Take a look below:
Average Online Estimate
Our Price Opinion
Sold Price Increase vs. Online Estimates
Databases like Zillow and Realtors Property Resource (RPR) give online estimates of what they think your home could be worth or sold for. You might think these are accurate, but they are not! In the above table, one of our client’s homes was estimated at $414,683.00.
Our team took a look at the house, ran the numbers and came up with our own price opinion: $500,000.00. We believed this is what it could sell for.
What’s incredible is that the final selling price ended up being $510,000.00, even $10k more than what we anticipated. This brought the overall sold price to 22%+ more than what online estimators came up with. It’s incredible!
And that’s not the only example like this. We have many homes like this. In fact, on average, we listed and sold homes for an average of 8-9% higher than their online estimates. It’s a great time to sell!
If you want to sell your home, the best place to start to try our free no-obligation home market value estimator tool. A real person from our team will look at your house and give you a fair and competitive price opinion, just like in the example above. Don’t rely on online estimators. Let a real person look it over!
Buying a Home in Kansas City
Oddly enough, it’s still a great time to purchase a home in KC.
An average per square footage price of around $81.60 is totally possible to find in Kansas City, even during a seller’s market. That’s 37.21% cheaper than what you’ll find in the rest of the United States!
Interest rates in KC are also very low: around 3.19% for a 30-year loan and 2.43% for a 15-year loan.
But what about the low inventory level? Isn’t that a bad thing for the buyer?
To be honest, you shouldn’t be intimidated by the low inventory issue. Here’s why:
- If you find a great realtor who can fight for you and can make deals happen quickly, they’ll be able to find you the right home.
- The more willing you are to act fast and be light on your feet, the better chances you have at finding a fantastic deal.
- If you’re pre-approved for a loan, that will set you up for success (if you’re not sure what kind of loan you’ll need, take a look at our breakdown of home loans).
Here’s The Truth
Kansas City is a great place to purchase a home. There are hundreds of great neighborhoods that could meet your list of wants and needs! With the average home price being $190,000-$250,000, it could make sense to look into buying options.
On the other side, if you’re curious about selling your home, the numbers don’t lie. You could get around 8%-22% more than what online estimates like Zillow are telling you.
Either way, our team would love to help you here. We want to be your partner. We want to be your friends.
Contact us here or call us at 816-716-5172. We’d love to serve you!