Kansas City for Q1 of 2023:
Kansas City's real estate market has been experiencing a shift in Q1 of 2023. The inventory has increased, prices have softened, and mortgage rates have been swinging, all of which has impacted the market in various ways. Let's dive into the data to understand what's going on.
Firstly, pending sales are down 14% from 9,569 to 8,179, which is lower than pre-pandemic numbers.
Closed sales have decreased from 8,217 to 6,575, a 17.8% decline. Sales continue to decrease as home prices continue to increase, and interest rates start to stabilize. As a result, the market has become more competitive for buyers, making it challenging to find homes.
However, there's good news for buyers as inventory has increased by 13.5% from last year, standing at 4,478 homes for sale compared to 3,947 homes for sale at the same time last year. Although this is still lower than the 7,187 homes for sale in Q1 of 2020, the increase in inventory is a promising sign for buyers as the market is starting to shift.
With a 40% increase in inventory, we are up to 1.4 months of supply. A balanced market would have 2 months of supply. The inventory is still relatively low, which means that it's still a seller's market. However, the increase in inventory is a sign that there may be more opportunities for buyers to make offers in the coming months.
Regarding home prices, they've increased 1.4% compared to last year, and 24% compared to 2020, with an average sales price of $321,263. In 2022, it was $316,935, and $244,405 in 2020. The percent of the original list price received at the sale is down from Q1, as the decrease in supply is compressing sales prices. Sellers can expect to receive 97.6% of their asking price.
Mortgage rates have been swinging, and with fewer buyers competing for homes, price growth has continued to soften. The lack of inventory has kept prices from continuing to fall. We still have high demand, and any relief in interest rates could cause a dramatic increase in contract signing.
In conclusion, Kansas City's real estate market is experiencing a shift in Q1 of 2023. Inventory has increased, and prices have softened, making it a good time for buyers to make offers. However, the market is still relatively competitive for buyers, with inventory remaining low. Keep an eye out for any changes in mortgage rates as they could have a significant impact on the market.