Where is the Kansas City Real Estate Market Headed in 2023?

Is the Kansas City real estate market reacting to the increasing mortgage rates and rising inflation by cooling down? At least if you are reading and watching the national news you probably think it is gloom and doom, right? Home prices are slashing and homes are sitting on the market but then you see houses in your neighborhood go on the market and sell quickly. So what is really going on with the Kansas City real estate market?

While there are varying opinions of where the real estate market is headed in Kansas City, most opinions vary from a slight appreciation to a modest depreciation of home values.  

Let's look at the latest projections from the experts who study the real estate market daily. 

The graph below shows the projections from 5 of the top experts. 

As the chart above shows, the Mortgage Bankers Association (MBA), Pulsenomics (HPES), and the National Association of REALTORS (NAR) are predicting slight appreciation for 2023. Fannie Mae and Zelman are predicting home prices to fall in 2023. 

If you take the average of all five predictions for 2023, there will be little appreciation for 2023.

So what does this mean if you are thinking of selling or buying real estate?

The real estate market is so volatile that not even the experts agree on what is going to happen to home values in 2023. Home values may stay flat or fall, it is really a guessing game. One thing the experts do agree on is that home values will not increase like they have the past 2 years.

The real estate market is expected to have some corrections and then home values should appreciate at a more normal level later in 2023. 

The Home Value Assumption Study (HPES) by Pulsenomics is a survey of 100 industry experts who expect the market to have some hard corrections and then homes to appreciate between 2.6% to 4% between 2024 and 2026. 

Jason Lewris, Co-founder and Chief Data Officer for Parci (a company of data scientists who report real estate investment news to large investors), says:

"In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt."

My recommendation is to not let uncertainty change and fear change your real estate plans. Real estate is local and if you are unsure about where prices are headed in a local neighborhood, reach out to the Dowell Family Team. We have the tools to help you determine where local neighborhoods are heading and we would be happy to provide you professional advice and guidance in determining what is best for you.

BOTTOMLINE:

The real estate market is shifting in Kansas City and it can be quite complicated to analyze without the right tools. The Dowell Family Team has a wealth of knowledge and a lot of real estate tools in our arsenal to help you make an informed decision that could have a dramatic influence on your real estate decisions.

Would you like to discuss your real estate goals?