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Kansas City, MO: Real Estate Market & Trends 2016

The Kansas City real estate market continues to marinate in the first-half of 2016, much like the slow-smoked style barbecue it’s known for. Home prices and appreciation rates are on pace with the national average, home affordability remains dominant as ever, and an ever-improving economic landscape continues to enhance KC’s outlook moving forward. That said, the median home price for Kansas City real estate was $163,300 during the first quarter of 2016, slightly behind the national average of $215,767. Although price growth has slowed as of late, home prices are actually up from a year ago, and the Kansas City real estate market should continue to see decent growth in the second-half of 2016.

Kansas City, MO Real Estate Market Statistics:

Kansas City real estate investments

The first quarter witnessed the Kansas City real estate market appreciate at rates very similar to the national average. The one-year appreciation rate for real estate in Kansas City was 6.7 percent compared to the national average of 6.1 percent. All in all, price appreciation and principle payments in the last three years have helped boost total equity growth for Kansas City real estate investors and homeowners. For those considering Kansas City real estate investments, the following provides a breakdown of appreciation rates in previous years:

  • Homes purchased in the Kansas City, MO housing market one year ago have appreciated, on average, by $12,868. The national average was $15,781 over the same period.
  • Homes purchased in the Kansas City, MO housing market three years ago have appreciated, on average, by $35,985. The national average was $49,356 over the same period.
  • Homes purchased in the Kansas City, MO housing market five years ago have appreciated, on average, by $47,594. The national average was $68,727 over the same period.
  • Homes purchased in the Kansas City, MO housing market seven years ago have appreciated, on average, by $50,539. The national average was $59,758 over the same period.
  • Homes purchased in the Kansas City, MO housing market nine years ago have appreciated, on average, by $36,094. The national average was $16,435 over the same period.

Appreciation rates for the Kansas City real estate market remain slightly below with the national average. As shown above, total equity gains are lower than the rest of the country from year one till year seven. The good news, however, is equity gains picked up steam during the nine-year mark, as equity climbed to $36,094 compared to the national average of $16,435.

As of July 2016, there are currently 1,396 properties in the Kansas City area in some stage of foreclosure. According to RealtyTrac, the number of Kansas City foreclosures in the month of July was 15 percent higher than the previous month and 27 percent lower than the same period in 2015. Additionally, the number of REO properties in Kansas City fell 11.3 percent from the previous month and 47.4 percent from the same time last year. That said, Kansas City real estate investors and homebuyers should see a pick up in coming years.

Kansas City, MO: Real Estate Market Summary:

Kansas City real estate

  • Current Median Home Price: $163,300
  • 1-Year Appreciation Rate: 6.7%
  • 3-Year Appreciation Rate: 21.3%
  • Unemployment Rate: 4.4%
  • 1-Year Job Growth Rate: 1.4%
  • Population: 473,008
  • Median Household Income: $45,150

Kansas City, MO: Real Estate Market (2016) — Q1 Updates:

Kansas City real estate investing

The Kansas City real estate market continues to trail the national average in a variety of aspects during the first quarter of 2016. Home prices and appreciation gains for the area are below the national average, while long-term outlook for Kansas City remains mild. That said, the economic environment in KC is on the mend, as unemployment continues to improve and employment growth remains positive. Although the current unemployment rate in Kansas City is 4.4 percent, which is lower than the national average of 5.0 percent and better than a year ago, job growth remains stagnate, as the one-year job growth rate in Q1 was a disappointing 1.4 percent compared to the national average of 2.0 percent. For the Kansas City real estate market to improve in 2016 and beyond, the local employment growth needs a major boost moving forward.

The biggest advantage of the Kansas City housing market is affordability, which continues to be lead the nation. In the first quarter of 2016, Kansas City homeowners paid roughly 7.3 percent of their income to mortgage payments, while the rest of the nation paid almost double at 14.5 percent. With a historical average of 10.2 percent, which is vastly lower than the national average of 19.5 percent, the Kansas City housing market continues to improve with each passing year and is now one of the more affordable markets in the nation.

Another component benefiting the Kansas City real estate market is new housing construction. The current level of construction in KC is 53.3 percent above the long-term average, while the rate of single-family housing permits surpassed the national average, reaching 15.5 percent in Q1 compared to the national average of 11.3 percent.

Moving forward, the Kansas City real estate market should see minimal growth in the second-half of 2016. The National Association of Realtors (NAR) forecasts weaker price growth in Missouri than in the U.S. in the next 12 months, with price expectations for Missouri real estate currently at 3.1 percent, compared to the national average of 3.8 percent. That said, the Kansas City real estate market should remain on pace, or slightly below, with the national average in the second-half of 2016.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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