In our last blog, we gave a housing market forecast for 2021 and answered lots of questions on how the housing market in Kansas City is looking. We shared what we learned from the pandemic last year along with a couple viewpoints of what the market is doing from a buyer’s and seller’s standpoint.
Now it’s time to answer more specific questions like, “What is the average home price in Kansas City” and “Is Kansas City a good place to invest in real estate?”
Average home price in Kansas City
Even amidst an unpredictable pandemic last year, there were points in the second quarter where home prices were up by almost five percent more than those of 2019 – again, that’s during a lockdown!
As we’ve been saying, the high demand for homes and low inventory are driving up prices, making the housing market in Kansas City a seller’s market. Numbers from realtor.com tell us that the average home price in Kansas City sold in late summer last year was $280k+. And get this seller’s – inventory is so low right now that with current active listings, there is only about a month’s supply out there. This means, you’ll most likely be in a multiple offer, above asking price and under contract in a few days situation. Scary but exciting, right? Not scary if you have a realtor you can trust by your side! (Cough, cough, Dani Beyer Real Estate)
Zillow is showing Kansas City (among a few other midwestern cities) as one of the nation’s fastest-moving large markets with seller’s typically accepting offers after just four days on the market. We can tell you, in just the first few weeks of 2021, that is accurate!
If you’re a first-time home buyer and not from the area, Kansas City Magazine put out a great article on a breakdown of some Kansas City neighborhoods, their median home price, school district info and more! Check it out!
Is Kansas City a good place to invest in real estate?
We can never accurately predict what will happen to a housing marketing in say, 10 years, but we can tell you right now, with the growth we have seen and continue to see in our city – our answer is YES!
Even compared to other midwestern cities, Kansas City home prices are so affordable. Compared to places like Chicago and California, in Kansas City, Missouri, you can expect to pay 38%-55% less for a home of equal or greater value.
We’ve seen an influx of movers from the west coast, especially during this pandemic. People are spending more time at home, and they want it to be in a home that won’t break the bank or take all of their extra income. And they want it to be a home where they’re not paying $400/square foot!
If you’re considering an investment for a long-term rental situation, it would be good to know that the median rent price in Kansas city is just over $1,000. This, of course, varies depending on what part of the city you’re interested in investing in. With many top medical schools, hospitals and universities, there are always quality tenants looking for places to live! According to Norada Real Estate Investments, “Kansas City properties have a track record of being one of the best long-term real estate investments in the U.S.” A strong statement but made by a trusted company!
Bottom line, if sale prices were up during 2020, a dumpster fire of a year, we can only predict that they’ll be up even more during 2021 – a year we hope to call a redemption year for many. And don’t fret, buyers! We know there’s been a lot of rah rah talk for the sellers. So you’re probably thinking, am I just going to get screwed over with the price of the house I want to buy? The good news for you is that interest rates are still the lowest we’ve seen, and they should hold steady. So there will be a lot of savings on that end for you.
Sometimes people can get lost in the numbers of everything and this process can all feel a little bit overwhelming. We’re here to take that stress away from you. We’ve been in the business for 15 plus years, and our team has been consistently at the top of the realtors in the Kansas City metro for many of those years. We know our stuff and we’re passionate about what we do. So contact us, even if you just have questions! We’d love to be a resource for you.