So, How is the Real Estate Market in Kansas?
It’s been a little sluggish! Values of homes in Kansas have increased by 43.9 percent over the past five years.
However, sales of homes fell by 11.6 percent for September 20, 2023, YoY. It could be due to the mortgage interest rate increasing to a record high of almost 8 percent! The number of homes that are available to purchase for sale in KS is 1,571 during the month, which is 20% lower than in 2022. The housing market in Kansas is currently in the negative.
The decline in home sales is due to the fact that there need to be more homes within the Sunflower State. The supply period is two months, which makes KS an extremely competitive market. Therefore, if you’re planning to sell your Kansas property, it is time to advertise the property on MLS.
Kansas Real Estate Market Statistics
- The Average House Price: The average median price of a home for homes in Kansas can be found at $259,000, increasing by 2.4 percent YoY. By 2024, the median home sale price is expected to increase slightly due to the state’s limited supply of homes.
- Homes Sales According to September 2023 statistics, Home sales fell by 11.6 percent YoY! The month of September 2023 saw just 2,814 homes sold, which was down from 3,184 sold during September 2022.
- average rent prices: Rental costs vary across the state. A typical renter living in Kansas City pays $1,007, and the person who lives in Overland Park pays $1,387.
- Median Days On Market: The median days of houses for sale were 20 days, which is down 4 days YoY.
- Pending sales: The number of homes that are available for sale fell by 20% YoY when compared to 2022. At present, there are 1,550 houses to be sold within Kansas.
- Months of supply: The typical supply month is one month. The demand for KS cannot be satisfied by the limited supply. The scarcity of houses in KS is greater than that of the nationwide house market.
Kansas Housing Market Predictions 2024
Kansans have weathered the rumblings of rising mortgage rates and increasing home prices in 2023. Here’s what we expect for the Kansas housing market:
- Home Sellers will Return to the market in 2024: Sellers who took to remain off the market in 2023 are likely to return. Particularly those who cannot get new jobs or who want to relocate to an affordable location. Whitney is the expert who predicted 2008’s financial meltdown with accuracy and has predicted that baby boomers seeking to move down could also contribute around 30 million homes.
- The Mortgage rates are set to stabilize by the second half of 2024. Rates for mortgages hit 7.79 percent in October of 2023. This was the highest in the past 23 years. But, it fell to 7.35 percent in November due to the weakening employment market and a slowing economy. Inflation rates for the year were reduced from 3.7 percent to 3.2 percent. We expect rates to remain at or above 6 percent; however, they are expected to be stable in the second quarter of ’24.
- The number of home Buyers is Set to Increase: The historically high rates of interest prevented buyers from buying in 2023. However, the demand for mortgages increased after the rate of interest was reduced to 7.35 percent in November. The lower inflation rate and the stabilization of rates are expected to bring back house hunters.
- Home prices will continue to increase: Home prices rose consistently in the most populated cities all across KS YoY, reaching $259k in September 2023. Experts predict that home prices will climb until the supply-low demand dynamic shifts.
- New home construction sales will increase: 12.3% of homes bought in September were brand new homes, which is the highest level since 2022. Builders offered $30,300 worth of concessions to lure buyers in 2023. We believe sellers and builders will battle for buyers in 2024.
- iBuyers continue to offer lowballs: iBuyers offered 104.1 percent on market worth in 2021. They gave 86 percent in 2022 and 70 percent in 2023. Opendoor, along with Offerpad, have suffered losses of hundreds of billions between 2022 and 2023. In their struggle to survive in the market, they’ll offer low-ball offers.
Bonus Prediction: Buyer Broker Commissions Will Be Negotiable!
In a shocking twist of events, jurors in Missouri awarded over $5 billion in damages to the plaintiffs of Sitzer-Burnett. The decision prompted home sellers across the country to file grievances against the NAR’s Cooperative Compensation Rule.
The Participation Rule or Cooperative Rule, also known as the Participation Rule, stipulates that listing brokers must provide an equal amount of compensation to buyers agents in order to allow them to advertise their properties on an affiliated NAR MLS.
Lawsuits such as Moehrl, Gibson, Batton, Nosalek, and Batton 2 contest The Participation Rule. They charge NAR and other major real estate firms of colluding and colluding to keep commissions for agents in the high range.
If a jury decides to find that the defendants are as guilty, the buyer agent’s compensation could alter. Buyer agents could be obsolete in 2025! Phew.
Although buyer agents aren’t likely to disappear in 2024, they can negotiate commissions. This is probably the way they’ll remain in the game.
When Will the Housing Market Crash in Kansas?
A market crash for housing that occurs in the Sunflower State is highly unlikely.
The robust economy of Kansas, its broad job market, and low costs of living are sure to draw people and businesses looking for new opportunities.
Johnson’s population has grown by 1.53 percent from 2020 to about 619,195 people at 2022’s close. Sedgwick has been ranked as the 2nd most rapidly growing town in Kansas in terms of population, with it increasing by 0.32 percent.
Kansas is renowned for its oil wells, wheat, cattle, and Great Plains, with scorching summers and frigid winters.
The Kansas job market is good. Its unemployment is 2.9 percent. Kansas is ranked the 44th most expensive state and 33rd most desirable to reside in the United States. A median family income for Kansas is 64,521 dollars. Living in the smokey green hills and lush fields of Kansas is affordable. It’s unlikely that the state’s housing market would go into a slump anytime soon.