Kansas City Real Estate Market (1st quarter 2014)
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.
Looking Back
Kansas City is experiencing renewed market conditions with an average sale price increase of 6.2% increase compared to 1st quarter 2013. Residential total sales level (new and existing homes) represent a 3.6% decrease compared to the 2013. The monthly supply of homes of 4.7 months represents a competitive market for combined new and existing homes. Unemployment rates has declined from 6.6% to 6.0%.
Markets priced below $250000 shows increased average sale price of 7% (2013-$110005 and 2014-$118223) with decreased sales activity of 7%. Real estate markets from $250,000 to $500,000 have increased average sale price of less than 1% (2013-$335443 and 2014-$336866) with decreased sales activity of 6%. The markets above $500,000 had increasing sales activity of 6.2% along with an increase sale price of 2.9-% (2013-$709941 and 2014-$731195). New construction sales activity decreased 5.5% and average sales price decreased less than 1% (2013-$345238 and 2014-$347125).
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) 6.0 6.6 – 0.09%
Months of Supply 4.7 6.4 -27.0%
Sales Volume 5728 5945 -3.7%
Average Sales Price $173000 $162200 +6.2%
Average Days on Market 100 111 -0.10%
MARKET AT A GLANCE
Economic Climate Average-Improving
New Construction Increasing
REO Activity Low-Improving
Supply Improving
Demand Improving
Market Direction Improving
Market Mood Improving
Looking Forward
The Kansas City real estate market has lower unemployment, increased sales volume and an increase in prices. The competitive 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.
Edited by Richard Cunningham SRA CRP-Cunningham Appraisal LLC, rick@cunninghamappraisal.com 913-220-7009-Appraises residential, relocation, divorce, market valuations in the Kansas City Area-available for speaking engagements to groups/Sources KCRAR and Heartland MLS.
