Kansas City realty experts talk about the housing market, prices and mortgage rates

Kansas City realty experts talk about the housing market, prices and mortgage rates

Roger Pettingell Sarasota Real Estate

MATT: KRIS, THAT IS RIGHT. WE CHECKED. TO BUY A HOME LIKE THIS LAST YEAR IN LEAWOOD, BUT 30-YEAR MORTGAGE RATE ON JULY 29, WAS RIGHT AT 2.8%. TODAY, IT’S AT 5.3%. WE TALKED WITH A COUPLE OF EXPERTS HERE IN THE KANSAS CITY AREA TODAY ABOUT WHERE THE HOUSING MARKET GOES FROM HERE. JAKE: THIS IS BLUE VALLEY WEST. MATT: THE SCHOOL DISTRICT AND THE NEIGHBORHOOD HELPED THIS OVERLAND PARK HOME SELL. JAKE: THIS NEIGHBORHOOD REALLY IS REMARKABLE. MATT: THE HOME JUST SOLD, EVEN AS MORTGAGE RATES HAVE RISEN. AND CLOSED HOME SALES IN JOHNSON COUNTY ARE DOWN 8% FROM THIS MONTH LAST YEAR. JAKE: THEY REALLY JUST DID A NICE JOB WITH ALL OF THEIR FINISHES. MATT: REALTOR JAKE BECKNER SAYS CHANGES IN KANSAS CITY’S HOUSING MARKET HAVE CHANGED HIS TALKS WITH BUYERS AND SELLERS. JAKE: IT WAS KIND OF EVEN SIX MONTHS AGO, YOU CAN GO TO A SELLER, YOU CAN SAY, HEY, THROW ME OUT YOUR DREAM NUMBER, AND LET’S GO GET IT, AND IT WOULD WORK. NOW, YOU KNOW, WITH THE RATES RISING PEOPLE AREN’T ABLE TO OFFER, YOU KNOW, $30,000 OVER FOR THEIR HOMES ANYMORE. JEFF: WE’RE SEEING MORE NEGOTIATIONS. WE’RE SEEING PRICE REDUCTIONS. MATT: JEFF CARSON WITH THE KANSAS CITY REGIONAL ASSOCIATION OF REALTORS SAYS BUYERS HAVE STARTED TO SLIP INTO THE DRIVER’S SEAT IN NEGOTIATIONS. JEFF: RIGHT NOW, SELLERS ARE STARTING TO GROAN THAT THEY SHOULD HAVE JUMPED ON TO THIS SOONER. AND AT THE SAME TIME BUYERS, ESPECIALLY THE ONES THAT MISSED OUT, YOU KNOW, ON GETTING THEIR DREAM HOME, THEY’RE STARTING TO FEEL THEY’RE A LITTLE BIT MORE IN CONTROL OF THEIR DESTINY RIGHT NOW. JAKE: THERE IS A REALLY NICE WALK-IN CLOSET. MATT: AS BECKNER SHOWS HOMES IN THE MONTHS AHEAD, HE’S STILL TELLING HIS CLIENTS. A HOME IS A GREAT INVESTMENT. JAKE: DON’T BE AFRAID WHETHER OR NOT THE INTEREST RATES RISE OR NOT. STILL PURCHASING A HOME IS A GREAT FINANCIAL OPTION. MATT: NOW, FOR THE PAST COUPLE OF MONTHS INVENTORY HAS GROWN ,, MEANING MORE HOMES ON THE MARKET, SO THAT CAN HELP

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Kansas City realty experts talk about the housing market, prices and mortgage rates

Home sales slower due to rising interest rates, still values continue to rise

With news of the Federal Reserve’s interest rate hike this week, and Federal Reserve Chairman Jerome Powell saying activity in the housing sector has weakened, Kansas City area Realtors are looking ahead to the next few months in the housing market. Realtor Jake Beckner with the Butler Group is still optimistic for buyers and sellers as home values continue to rise, albeit not as fast as the past couple of years. “Six months ago, you can go to a seller, you can say, ‘Hey, throw me out your dream number and let’s go get it and it would work,” he said. “With the rates rising, people aren’t able to offer $30,000 over for their homes anymore,” Beckner said. Beckner said he is counseling sellers that it may take slightly longer to sell their homes. He is also seeing buyers who could not compete against investors and cash offers start to qualify for FHA, VA, and first-time home buyer loans. “If you’re interested in selling, don’t be afraid you’re still going to get top dollar for your home,” he said. “If you’re buying, then it’s not as scary as it might seem.” Across the Kansas City region, home sale closings are down about 9.8% from June of this year to June of last year, even though pending sales are not as dramatic a decrease.“We’re seeing more negotiations. We’re seeing price reductions,” said Jeff Carson, director of Realtor Advocacy for the Kansas City Regional Association of Realtors.Carson said buyers have started to slip into the driver’s seat in negotiations.“Right now, sellers are starting to groan and that they should have jumped on to this sooner,” he said. “At the same time, buyers, especially the ones that missed out on getting their dream home, they’re starting to feel they’re a little bit more in control of their destiny right now.”Carson said overall, the Kansas City housing market has started to stabilize.As Beckner shows homes in the months ahead, he’s still telling his clients a home is a great investment.“Don’t be afraid whether the interest rates rise or not. Still purchasing a home is a great financial option,” he said.

With news of the Federal Reserve’s interest rate hike this week, and Federal Reserve Chairman Jerome Powell saying activity in the housing sector has weakened, Kansas City area Realtors are looking ahead to the next few months in the housing market.

Realtor Jake Beckner with the Butler Group is still optimistic for buyers and sellers as home values continue to rise, albeit not as fast as the past couple of years.

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“Six months ago, you can go to a seller, you can say, ‘Hey, throw me out your dream number and let’s go get it and it would work,” he said. “With the rates rising, people aren’t able to offer $30,000 over for their homes anymore,” Beckner said.

Beckner said he is counseling sellers that it may take slightly longer to sell their homes. He is also seeing buyers who could not compete against investors and cash offers start to qualify for FHA, VA, and first-time home buyer loans.

“If you’re interested in selling, don’t be afraid you’re still going to get top dollar for your home,” he said. “If you’re buying, then it’s not as scary as it might seem.”

Across the Kansas City region, home sale closings are down about 9.8% from June of this year to June of last year, even though pending sales are not as dramatic a decrease.

“We’re seeing more negotiations. We’re seeing price reductions,” said Jeff Carson, director of Realtor Advocacy for the Kansas City Regional Association of Realtors.

Carson said buyers have started to slip into the driver’s seat in negotiations.

“Right now, sellers are starting to groan and that they should have jumped on to this sooner,” he said. “At the same time, buyers, especially the ones that missed out on getting their dream home, they’re starting to feel they’re a little bit more in control of their destiny right now.”

Carson said overall, the Kansas City housing market has started to stabilize.

As Beckner shows homes in the months ahead, he’s still telling his clients a home is a great investment.

“Don’t be afraid whether the interest rates rise or not. Still purchasing a home is a great financial option,” he said.


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