Kansas City home values are top of mind for most home owners. If you own a home in KC you should know that the market is changing. But not as drastically as it might seem from what is reported in the news. It is important to have the facts so that you do no make decisions based on inaccurate information.
The Truth About Home Values
Although you may have come across news articles discussing a drop in home values or depreciation in home prices, it’s crucial to keep in mind that those headlines are created to Pack A Punch. They want to make a strong impression using only a few words. Headlines aren’t usually the best at demonstrating the big picture.
The graph below uses the latest data from S&P Case-Shiller to help understand what is occurring in the housing market today. While prices have decreased in certain markets recently, home values have increased nationally compared to this time last year:
The facts are clear – the market is shifting and home price growth has moderated in recent months due to a decrease in buyer demand as mortgage rates continue to increase. While this is what the headlines are focusing on, it’s important to keep the bigger, longer-term picture in mind. Though month-over-month home prices have decreased, annual home price growth is still well above typical levels. Prices are about 10% higher than they were last year. So while the market may be shifting, it’s nowhere near as bad as the news would have us believe. If you’re thinking of selling your home in the near future, now is a good time to do so. Just make sure you have the right real estate agent to help you navigate these changing market conditions.
What About Your Home’s Equity?
It’s true that you won’t be able to take advantage of the 20% appreciation we saw in early 2022, but your home is still worth 10% more than it was this time last year. And while a 10% gain isn’t as much as 20%, it’s still significant compared to a more normal level of appreciation (3-4%).
In other words, don’t let the scary headlines stop you from selling your home. Home prices have increased a lot in the past two years. Your house is probably worth more now than it was then. Even though prices might not go up as much in the future, you can still use that extra money to help pay for your next home.
“Potential home sellers gained significant amounts of equity over the pandemic, so even as affordability-constrained buyer demand spurs price declines in some markets, potential sellers are unlikely to lose all that they have gained.” –Mark Fleming, Chief Economist at First American
Bottom Line
Finding out your home’s value or equity can be tricky, but I would love to help you so that you have expert guidance. Reach out to myself or any of our team members at team@plainsparis.com or (816)439-8705 (call or text).
