None of us have a crystal ball so we can’t say definitively what the 2020 real estate market will hold for Kansas City, but a lot of data goes into making many of these forecasts and they are worth hearing out. One of the highest regarded forecasts for our local area is the forecast put out by Wichita State University. According to this and other national forecasts, mortgage rates are expected to remain low. Total home sales in the metro area are expected to increase at least 3% from last year and new construction is expected to increase over 10% from last year’s numbers. When it comes to inventory and new construction, the Kansas City numbers are pretty on par with national averages. We’ve consistently seen low inventory and while it’s expected to improve in 2020, it will likely remain a seller’s market.
The important difference in the 2020 Kansas City real estate market in comparison to past years is that home price appreciation is expected to take a drop in 2020. According to realtor.com’s 2020 forecast, the Kansas City market is listed as the city (larger metro cities) to see the largest price decline this year although we are listed in the top 10 in regards to increase in number of sales. The Wichita state forecast lists our expected price appreciation at 4.9 percent compared to 6.2 in 2019, but still shows prices on an increase in 2020. Like we mentioned before, a forecast is a forecast – it’s nothing but an educated guess and in an election year there is even more unknown variable at play. If you ask many top agents in the city, they will tell you that they do not expect to see a price decline, but rather a price increase. What we can tell you is that with a low inventory and excellent mortgage rates, buyers are on the hunt for excellent homes, but as a market shift begins, home sale preparation will become even more important than in the past 5 years. If you or anyone you know is looking to sell in the next year NOW is the time to meet with us. Consultations and conversations are always free and it’s always better to start preparing early. Please don’t hesitate to call us if you have questions about the market in general or your own home and neighborhood – we’d love to hear from you!