The Kansas City Metropolitan Area is a fifteen-county area that is anchored by Kansas City, Missouri and is bisected by the border between the states of Missouri and Kansas. As of the 2010 Census, the metropolitan area has a population of 2,035,334.
Kansas City is experiencing renewed market conditions with an average sale price increase of 8.7% increase comparing through third quarter of 2012. Residential total sales level (new and existing homes) represent a 9.5% increase through third quarter of 2012. The monthly supply of homes of 4.7 months represents a buyerâ€™s market for combined new and existing homes. Unemployment rates have declined from 6.8% to 6.6%.
Markets priced below $250000 show decreased average sale price of 1.3% (3rd quarter 2012-$116282 and 3rd quarter 2013-$114247). Real estate markets from $250,000 to $500,000 have increased average sale price of less than 1% (3rd quarter 2012-$334743 and 3rd quarter 2013-$336275) and sales activity has increased by 22% for the same period. The markets above $500,000 had increasing sales activity of 25% along with an increasing sale price of less than 1% (3rd quarter 2012-$732444 and 3rd quarter 2013-$735702). New construction sales activity increased 14% and average sales price increased 8% (3rd quarter 2012-$318458 and 3rd quarter 2013-$345880).
The historically low mortgage rate, have created a favorable buying environment for those with a job and good credit. Consumer confidence and job security are gradually increasing but remain cautious.
STATISTICAL SNAPSHOT Today One year ago Change
Unemployment (KCSMSA) 6.6 6.8 – 0.03%
Months of Supply 4.7 6.4 -27.0%
3rd Quarter Sales Volume 21678 19600 +9.5%
Average Sales Price $182600 $166700 +8.7%
Average Days on Market 143 163 -0.12%
MARKET AT A GLANCE
Economic Climate Average-Improving
New Construction Low-Increasing
REO Activity Average-Improving
Market Direction Improving
Market Mood Improving
It is appears the Kansas City real estate is still a buyer market. The low prices are still attracting more buyers and this includes investors. The key ingredient to this market recovery will be job growth. Metro Kansas City is a diversified economy including trade, transportation, utilities, education, communication, government and health services.
By: Richard Cunningham