7 Things to Know About the 2020 KC Real Estate Market
Are you feeling like 2020 might be the year you move your family into a larger home? Maybe you’re ready to hop on the minimalist train and downsize? Or, are you looking for new investment opportunities and thinking a rental property could be the answer? Here is a basic rundown of what I’m keeping an eye on for you this year in Kansas City’s real estate market.
1. Average Mortgage Rate Expected to Remain Reasonable
Good news for buyers, mortgage rates aren’t expected to change drastically around here. National reports are pegging average mortgage rates to climb from 3.85% to 3.88% by the end of the year, but Kansas City’s will likely remain slightly lower.
2. Market Remains Competitive
Limited inventory and high demand will continue to be themes in 2020, especially with homes at or below the $250,000 price point. If your home falls in that category, there may be a lot of hungry buyers ready to pounce when you decide to list.
3. It’s Worth Keeping Your Eye on Prices
While a recent national report warned Kansas City could experience the largest drop in real estate prices of the nation's 100-largest metro areas, local experts aren't as wary. In fact, we expect buyer competition to keep those prices stable.
4. More Millennials Purchasing
Proving itself able to attract and retain 30-something millenials, this year we expect to see more young professionals and families purchasing their first and second homes. While the suburbs are popular for these buyers, many still have their eye on up and coming neighborhoods closer to the city center, like Waldo, Brookside, and the Crossroads.
5. Hotbed for Newcomers
Kansas City landed itself on Forbes’ recent list of 14 Up and Coming Real Estate Locations to Watch. With it’s affordable prices, Midwest charm, and recent ability to attract new technology firms, Kansas City is becoming more popular to those moving in from larger cities and the coasts.
6. Expect High Appreciation Rates
Home values are expected to increase, again! Zillow is expecting area real estate to appreciate by 2.3%
7. AirBnB Rentals Expected to Be Profitable
Rental properties continue to be a great investment option in Kansas City under the right circumstances. But now, short-term rentals through sites like AirBnB are to net owners a profit in Kansas City. Be sure to make sure you’re educated on city ordinances if you’re looking into this option!