Hey there, fellow Kansas Citians! It’s Rach the Realtor here, your local real estate guru. 🏡 Being born and raised in KC, I’ve seen the ups and downs, the secret spots, and most importantly, the ins and outs of our real estate market. Today, I’m answering the three biggest questions on everyone’s mind when it comes to buying a house in our beloved city this year.
1. What’s the Market Like?
Ah, the burning question! Kansas City has always had its unique charm and that’s no different in 2023. Whether you’re moving up in-house, a first-time home buyer, or a seasoned investor, our market has seen a bit of a transformation. Homes are sitting on the market longer and sellers are having to drop their price if they’ve priced too high. This is in stark contrast to the market of recent years when homes sold almost regardless of what they were priced at. Interestingly enough, the average sale price in the Kansas City Metro is actually up 5.4% from this time last year. Areas like Overland Park, Lee’s Summit, Prairie Village, Waldo/Brookside are still hotspots, with the downtown area seeing a continued revival in interest.
2. How Much Does It Cost to Buy a House in KC?
Price is, of course, a major consideration for all. The average home price in Kansas City right now is $367,000. However, there are pretty major variances depending on the location and type of home. I’d love to chat with you about the specific areas you are wondering about. But let’s say you’re purchasing an average Kansas City home for $367k. Generally, the minimum down payment is 3% which works out to $11,100. Closing costs will be around $6,000. You’ll also need $500 for an appraisal and about $800 for inspections. So the total upfront investment on this hypothetical home is about $18,000. I know, in this economy?! But hang with me… With current interest rates, your monthly payment is likely to be around $3,150. However, there are plenty of financing options and neighborhoods catering to a range of budgets. Leading me to my next point…
3. Is Now a Good Time to Buy?
This is the magic question. Looking at the above numbers and considering the higher interest rates, you might think it’s an automatic no. But consider this: our average sale price is up 5.4% from last year despite continually rising interest rates. Imagine what will happen once the rates finally drop back down. Buyers that have been waiting for them to drop will flood the market making it a bidding war city once again.
Alternatively, if you are ready to buy now and have your personal finances lined up, you can leverage the lull in the Kansas City real estate market to soften the blow of those closing costs and maybe even monthly payments.
Ways that my clients are doing this include: asking the sellers for closing costs upfront, negotiating some closing costs to be covered at the time of inspections, having the sellers pay for an interest rate buydown (saving some of my clients upwards of $300-600 per month in the first year of their loan!), and asking for closing dates that maximize their personal finances. What would that look like for you? Let’s chat!
Wrapping Up
Kansas City is more than just a place to live—it’s home. If you’re looking to take the plunge into the KC housing market, I’m here to guide you every step of the way. For more detailed insights, and market trends, or to simply chat about your housing dreams, visit my website at Rach the Realtor Kansas City. Let’s make those dreams come true together! 💫
Happy house hunting! 💙
Rach
Rach Kilmer
Putting Down Roots in Kansas City
Learn about Putting Down Roots in Kansas City on a May airing of House Hunters on HGTV.