If you’re a homeowner, real estate investor or potential buyer in the Kansas City North area, there is good news regarding recent Clay and Platte county home sales.
Both Clay and Platte counties outperformed the broader Heartland MLS area in average sales price achieving a 7.4% increase compared to the KC Metro at 1.9% increase over 2023 April YTD.
It’s important to note that national headlines do not always apply to local market conditions. The Kansas City Metro area has historically always been more stable than the national housing market data, and property values and the demand for housing remain stable across the KC Metro. While national home sales are down 23% over last year, this reflects the number of units sold and not sales prices. Home sales units are down because interest rates have risen so fast and placed those enjoying lower interest rates on the sidelines and those who have affordability issues on hold as well. Home prices continued to grow, although more slowly than in 2020-2021 during the frenzy. Home prices may soften 1-1.5% by end of 2023 with 2024 expected to see both demand and price increases.
Let’s take a closer look at the statistics for Clay and Platte Counties:
• 2023 average sales price is up 7.3% over 2022. Average sales price is $340,867
• 2023 days on market (DOM) increased to 38 days from 20 days in 2022
• 2023 percentage of the Original List Price Received is down 2.6% to 100.5% from 2022
• 2023 average sales price is up 7.5% over 2022. Average sales price is $424,769
• 2023 days on market (DOM) increased to 48 days from 31 days in 2022
• 2023 % of Original List Price Received is down 3.6% to 99.2% from 2022
Combined, the average sales price of homes in Clay and Platte counties is up 7.4% on average. Sellers are still getting full list price on average for their home, and the time required to sell a home averaged 35 days, up from 25 days in 2022. The inventory of homes is up 10% on average over 2022, but it’s still a Seller’s market especially with homes in the $150K-$300K range.
Throughout the KC metro, the statics prove our local housing market is still hot:
• Existing home supply is down 10% from 2022
• New construction homes are up 79%
• All residential home supply combined is up 16.7%
• Average home sales prices grew 1.9% YTD over 2022
So should you stay in your home for now or move to a new one? You might consider waiting until 2024 to begin the process if you:
• Bought or refinanced in last 2 years (and love your home)
• Can’t find your next dream home anywhere
• The cost of moving would be a stretch for you
However, it might be the right time to look for your next home if you:
• Understand higher interest rates are not forever and refinancing later is a real option
• Have a lot of equity and want to capitalize on higher selling prices for your home
• You need to move
Smart real estate investors understand that interest rates are only a small factor in purchasing a home or investment property. Price appreciation and owning where growth is expected is key. Currently, there are several very smart ways to leverage and obtain lower interest loans without taking on the old-school ARMs of the past. Home prices have maintained an average price growth of 3.8% over past 75 years. While home prices can see temporary declines, they will continue to rise over time. Interest rates will always fluctuate allowing you to lower mortgage cost.
If you’re considering buying or selling a home, it’s important to work with knowledgeable real estate agents who can guide you through the process and help you make informed decisions. Reach out to Resource Homes to discuss your options!