The Kansas City star
Homes in the Kansas City area are selling faster than almost any other American market.
Kansas City, Columbus, and Cincinnati homes typically sell within three days of listing – half the national six-day average, according to the national real estate exchange, Zillow.
It’s just the latest sign of an ultra-hot real estate market that has made it difficult to buy houses and easier than ever to sell. Zillow calculated the typical Kansas City home price at $ 244,048 in May, up nearly 16% from May 2020. This is the largest year-over-year price increase for Kansas City recorded in Zillow’s 1996 data.
But even if the market continues to gain momentum, experts see signs of relief on the horizon. The stocks that have been tense for months are finally loosening, says Zillow. The stock of available housing in May rose nearly 12% from April, although it’s still down nearly 25% since last year.
Nationwide, the home stock has grown for the first time since July 2020.
“Despite the extremely high demand for home ownership in this red-hot market, a steady spike in new listings seems to be finally turning the tide, leading to a long-awaited shift towards more choice for buyers,” Treh Manhertz, a Zillow economist, said in a press release . “Builders are rushing to build new homes, while widespread vaccinations and improved business confidence should help current owners put their homes up for sale.”
While buyers may see more choice and less competition, it’s unclear if or when prices can level off. Zillow’s economists predict that property values in the US will rise nearly 15% by May next year.
The Kansas City real estate market has been booming for years, with home demand far exceeding available inventory. That was the case before the coronavirus: In 2019, house prices in Kansas City rose faster than in most US cities, even in booming cities like Denver, Nashville and Austin.
That has only accelerated over the past year as the pandemic made many rethink what they want and need from inside their homes. In the Kansas City seller market, buyers must be willing to make quick decisions, compete on multiple bids, and in many cases pay above list price to get a home.
Data from the Kansas City Regional Realtors’ Association shows that property prices rise when real estate flies off the market. Across the region, the median sales price in May was $ 297,082, up 24% from May 2019. This region extends beyond the metropolitan area to include places like Lawrence and St. Joseph.
With warmer temperatures, rising sales prices and the reopening of the economy, the association does not expect a significant change in local stocks.
“With such a limited supply of existing homes to buy, all eyes are on builders to give the market a much-needed boost to meet buyer demand,” the association’s May report said. “However, rising material and labor costs, together with challenges in the supply chain, have contributed to significantly higher construction costs, with developers passing these costs on to home buyers.”
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Kevin Hardy does business for The Kansas City Star. Previously, he worked for The Des Moines Register, where he worked in business and politics. He has also worked for newspapers in Kansas and Tennessee. He is a graduate of the University of Kansas