KANSAS CITY, Mo. — Though inflation has hit a 40-year high and gas prices are expected to rise to $5 a gallon by mid-summer, Kansas City realtors don’t think the housing market will be badly affected.
Missouri Realtors published its report Highlighting the Missouri real estate market for the month of April. According to their findings, the number of homes sold decreased slightly, but homes continue to sell at higher rates compared to last year. The median home price is $285,764, a 12.2% increase from last year.
Kansas saw similar trends. The nationwide average selling price in April was $284,455, up 10.5% year-on-year.
KSHB 41 News recently compared two houses in Kansas and Missouri. A home on 49th and Paseo in Missouri was listed Zilov for more than $205,000 and a similar home on Glenwood Street in Mission, Kansas was listed on Zillow for more than $189.00.
Heather Bortnick of the Koehler Bortnick team says houses are undervalued in order to get multiple bids and sell the house faster.
“I’ve found that many agents price their properties aggressively,” Bortnick explained. “They want people to bid multiple times because a lot of sellers don’t want their homes to stay on the market for a long period of time.”
Bortnick and her team sell homes in Kansas and Missouri. They recently took control of a home in Leawood’s Hallbrook neighborhood and listed it at $1.8 million, confident it will sell quickly.
She says despite the current economic climate, gas prices in both Kansas and Missouri are lower compared to other states. Also, Bortnick adds, commuting distances on the subway are shorter, so despite the rise in home values, Midwest home price tags remain low.
Even mortgage rates, although rising, are still low.
“I think it’s getting more stable, and I think people are getting a little more comfortable with mortgage rates, what their jobs are, if they’re working from home, and I feel like it’s a really good time.” But if rates are going up at all, now is a good time to get into the market,” Bortnick said.
Rental prices are also increasing across the board. A new report from a research firm Clever claims statewide rents are rising four times faster than income, and Kansas City isn’t immune.
“I’ve found that this has really helped the housing market stay afloat because I don’t know why anyone would rent when they could own their own property and then they could put a little sweat capital into their house and then he could turn around and sell it in a few years and make some money off it,” Bortnick said.
The pandemic also opened the doors to remote work, which Bortnick said has sparked interest in becoming homeowners among people looking for homes with office space.
“I don’t think COVID has done anything for real estate other than being his friend,” she said. “I mean, a lot of people look at where they live and they want to love where they live. So they either sell or they renovate because they spend so much time in their homes.”
However, the renovation industry is affected by changes in the economy. People who want to fix their homes have to pay more and wait longer because of supply chain issues.
Bortnick advises buying now while you can.
“I think now is the time to get into the market,” Bortnick said.