Kansas City Housing Market Forecast: What's Ahead for the 2nd Half of 2024

As we enter the second half of 2024, here's what experts predict for home prices, mortgage rates, and home sales.

Home Prices Are Expected To Climb Moderately
Home prices are expected to increase at a more moderate rate. The graph below displays the most recent forecasts from seven reputable industry sources:

The main reason for this continued growth is the limited supply of homes for sale. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), explains: "One thing that seems to be pretty solid is that home prices are going to continue to go up, and the reason is that we don't have housing inventory."

While the inventory of homes in the Kansas City market is higher than it has been in the last few years, it's still relatively low overall. Because of lower inventory, there still aren't enough homes to meet the demand, pushing prices upwards. If you're considering purchasing a home, the good news is that you won't have to deal with prices skyrocketing like they did during the pandemic. However, it's important to note that prices are not expected to drop. Instead, they will continue to rise, but at a slower pace.

It's a good idea to enter the market sooner rather than later as it could save you money in the long run. Additionally, experts believe that the value of your home will continue to increase after you purchase it.

Mortgage Rates Are Forecast To Come Down Slightly
According to Fannie Mae, the Mortgage Bankers Association (MBA), and NAR, mortgage rates are expected to decrease slightly, which is good news for both buyers and sellers (see chart below).

We notice that here in the Kansas City area, even a small drop in mortgage rates can significantly reduce monthly payments for buyers. For sellers, lower rates will attract more buyers, leading to sell faster and potentially higher prices for your property. Additionally, if you've hesitated to sell due to today's rates, this might be the nudge you need to move forward.

Home Sales Are Projected To Hold Steady
In 2024, the number of home sales is expected to remain similar to last year's figures and may increase slightly. The graph below compares the 2024 home sales forecasts from Fannie Mae, MBA, and NAR to the 4.8 million homes sold last year:

The average of the three forecasts is approximately 5 million sales in 2024, representing a slight increase from 2023. Lawrence Yun, Chief Economist at NAR, explains this: "Job gains, steady mortgage rates, and the release of inventory from pent-up home sellers will lead to more sales."

With more inventory available and expected lower mortgage rates, we anticipate that more homes will be sold in the Kansas City market this year compared to last year, meaning more people can move. Let's collaborate to ensure that you are one of them. If you have any questions or need help navigating the market, reach out - call or text Jennifer Smeltzer and the Just Say Home KC Team at 816-656-2816.

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