Are You Prepared for Kansas’s 2021 Real Estate Market?
Despite the onset of the COVID-19 pandemic and the uncertainty that came with it, the Kansas real estate industry has remained strong. In 2021, markets across the Sunflower State are forecasted to continue that upward trend. With demand steadily increasing, low-interest rates motivating buyers, and rapidly rising home sale prices, real estate agents all across Kansas should gear up for another sunny year
2021 Kansas Real Estate Outlook: Hot
As of December 2020, the average home in Kansas was valued at $164,336, a 6.6% increase year-over-year. That figure is expected to increase as Zillow predicts the market will accelerate and rise another 10.0% within the next year. Rising prices, despite 2020’s challenges, are a promising sign that 2021 could be profitable for Kansas-based agents and sellers alike.
Additionally, home sales across the state grew by 35.0%, pushing the number of transactions to all-time highs. Meanwhile, the number of days properties spent on the market also fell to 68 days. Thanks to record low-interest rates and continued strong demand, Kansas, especially the Kansas City area, will likely be a seller’s market as 2021 unfolds.
Rent prices, on the other hand, have decreased by 4.7% year-over-year statewide and remain affordable when compared to the rest of the country. A total of 0.8% of Kansas mortgages were reported as 30-89 days delinquent. So, while new transactions continue to boom and Kansas attracts many out-of-state residents, current homeowners will thrive as well.
2020 Kansas Real Estate Market Data
|Zillow Home Value Index||$164,336|
|1-Year Change on Home Values||+6.6%|
|1-Year Change on Rent Prices||-4.7%|
|Homes With Negative Equity||1.8%|
|Delinquent on Mortgages (Statewide)||0.8%|
|Buyer’s or Seller’s Market||Seller’s|
Market Insights for Kansas
In November 2020, the Bureau of Labor Statistics reported that Kansas’s unemployment rate was 5.6%, down from 7.2% in July. As it sits, Kansas’s figure remains quite a bit lower than the national unemployment rate of 6.9%, but that’s likely to change as tourism and hospitality return to normalcy. Economic activity often correlates with growth in the real estate industry, and narrowing unemployment rates along with low-interest rates are a positive sign for Kansas-based agents the year ahead.
The Sunflower State also sports other attractive features that could positively impact its respective markets. Not only does Kansas City have one of the best dining scenes in the country and has a neighborhood that holds a spot on Niche.com’s “Top Ten Places to Live” list, but Kansas is also a great place for those with new remote-work positions looking to escape the congestion and dense urban feel of larger cities. Expect inventory to stay steady while demand increases, which will keep prices high. Kansas real estate, while still a great investment that affords its homeowners a high quality of life, will play out to be a strong seller’s market in 2021.
With positive job growth forecasted in areas of the state and increased commercial interest in the area — like this smart collar tech company that moved from Silicon Valley to Kansas City —- Kansas real estate agents will need to be at the top of their game. Though Kansas has a good supply of housing, buyers should still prepare for bidding wars. However, more buyers are looking to make Kansas their permanent residence and are thus likely willing to pay more, which could push the market to new heights. With a myriad of opportunities on the horizon, there has never been a better time to help your fellow Kansans find the property of their dreams.
Ready to Seize the Year With the Best Kansas Real Estate Courses From The CE Shop?
Enroll in our Pre-Licensing program now to get your career started and begin connecting your fellow Kansans with the real estate they’re looking for, or keep going strong with one of our comprehensive, 100% online Continuing Education packages. And if you want to network with your peers, join our Midwest Real Estate Facebook group and get connected!