The housing market in Kansas City has seen its fair share of growth over the last few years. High demand and low inventory drive up both prices and speed of home sales in Kansas City. A recent analysis by the Federal Housing Finance Agency found that Kansas City metro prices are growing faster than rates in most U.S. cities, including major cities like Denver, Nashville and Austin.
WHAT TO EXPECT IN 2020
New home construction is expected to stall next year, according to a 2020 real estate forecast from Wichita State University. With more potential buyers turning to existing homes, there is more opportunity for sellers thinking about selling their homes. Most experts locally and nationally predict more of the same growth for the Kansas City housing market in 2020. Stanley Longhofer, a professor and director of Wichita State’s Center for Real Estate, predicts that home prices in the Kansas City area will rise by nearly 5% next year. Longhofer said strong economic indicators, like low unemployment rates and growth in jobs, contribute to the growth of the housing market in Kansas City.
Here are the reasons why 2020 might be the year to sell your home:
LACK OF INVENTORY
The only real obstacle for homebuyers is supply: Low inventory has kept the number of homes sold in recent years nearly flat. Says Longhofer “there just are not enough homes available for sale in the neighborhoods and the price ranges that are the most popular people want to buy.” Longhofer said sellers of homes that cost less than $350,000 frequently put their home on the market on a Friday, and essentially have their pick of offers by the end of the weekend. This is an obvious advantage for sellers and chances are, you will get the full asking price. This stagnant amount of inventory often drives up the cost above asking price.
NEW BUYERS NEW OPPORTUNITIES
Overall buyer demand will remain very robust, particularly at the entry level, in 2020. According to a new Realtor.com report, millennials will increase their presence as homeowners and will account for more than 50% of all mortgages by the spring. A large portion of millennials will turn 30 next year, a time when many buy their first home. Millennials are anticipated to drive the U.S. housing market forward in 2020 more than ever, with large cohorts expected to either purchase their first home or decamp from city to suburb and trade up, according to an economic forecast published by Realtor.com on Wednesday.
FAVORABLE INTEREST RATES
The current inventory shortage is predicted to continue, possibly reaching a historic low. On the bright side, the Realtor.com report also predicts mortgage rates will stay reasonable, averaging 3.83% throughout the year. The average 30-year fixed mortgage rate started 2019 at 4.68 percent and steadily declined before closing out the year at 3.93 percent. In 2020, rates are expected to remain mostly stable, not straying too much higher or lower from the 4 percent mark. According to a recent article by Bankrate, there is no immediate cause for concern for rising interest rates “We have been in a low interest rate environment for quite some time, and the current signaling from the Fed is that rates will continue to remain low,” says Alexander Akel, president of Akel Homes in South Florida. “Even if they tick up north of 4 percent, they will remain extremely attractive when compared to historical rates.”
Looking to sell your home in 2020? The experts at Brookside Real Estate are here to help! Give us a call at (816) 333-3330 or stop by our storefront office at 9 W 63RD ST – When the flag is up, we’re open!