Commentary and market information for Kansas City Real Estate. Published by Rochelle Walker, Realtor, Natalie Burton Five Star Realty, LLC Contact me Local: 816-305-4140
In Kansas City, new home housing values have increased at a more moderate pace, and continue to go up now even as some parts of the country are seeing a decline. New-home values are up more than 5 percent in metro Kansas City this year and forecast to increase again next year. If you're waiting for prices to drop in metro Kansas City for new homes, it may cost your family more money to make the move to homeownership down the road.
The recent increase in foreclosures in Kansas City has decreased the average price of existing homes as well as the number of homes on the market. However, home sales have shown a steady pace due to historically low mortgage rates. While it is currently a buyer's market (they have their pick), they can expect prices to increase for existing homes as it gets closer to 2008. Sellers can expect for existing homes to stay on the market slightly longer as more homes enter the market and buyers take their time selecting homes. Kansas City's average days on market for May 2007 was 41 days while April 2007 was at 40 days. This is still lower than the national average which is approximately 6.7 months.
Delaying a home purchase may also be affected by the current mortgage rate. Mortgage rates have fallen in recent months to the point where they are actually lower than they were a year ago for fixed-rate mortgages. Economic forecasters expect mortgage rates to go up in 2007, which means your buying power will be decreased -- you will have to pay more for monthly mortgage payments and will qualify for a smaller loan amount. The combination of rising prices and rising mortgage rates are a double whammy for consumers.