If you’re worried about the Kansas City housing market crashing and bringing home prices down, you can rest assured that current data indicates otherwise. Unlike the conditions that led to the housing crisis in 2008, today’s market presents a much different scenario, with experts predicting continued price appreciation.
One significant factor contributing to the market’s stability is the stricter lending standards in place today compared to the pre-crash era. Mortgage companies now impose higher standards on homebuyers, making it more challenging to obtain loans. This increased scrutiny minimizes the risk of default, reducing the likelihood of mass foreclosures and plummeting home prices.
Moreover, the current housing market faces a shortage of available homes for sale, unlike the surplus seen during the housing crisis. With a mere 3.0-months’ supply of unsold inventory compared to the peak of 10.4 months’ supply in 2008, there simply isn’t enough supply to trigger a crash in home prices.
Additionally, homeowners today are exercising greater caution with their home equity, unlike the early 2000s when many used their homes as ATMs. While home prices have surged in recent years, homeowners are not tapping into their equity at the same rate as before. As a result, they are in a stronger financial position, reducing the likelihood of widespread foreclosures and distressed properties flooding the market.
In Kansas City, the housing market remains stable, with homeowners enjoying the benefits of increased equity and a limited inventory of homes for sale. While some may hope for a downturn in prices, the data suggests that the current market conditions are unlikely to result in a housing crash.
Author:
Chris Dowell, Dowell Family Team
Berkshire Hathaway HomeServices Alliance Real Estate
About the Author:
With over 30 years of experience, Chris Dowell is a seasoned professional in the Kansas City real estate scene. As a dedicated member of the Dowell Family Team at Berkshire Hathaway HomeServices Alliance Real Estate, Chris has been assisting Kansas Citians in buying, selling, and investing in real estate. Whether you’re looking to make a purchase, sell your property, or explore investment opportunities, Chris is here to guide you through the process.
Contact Chris:
Website: www.DowellFamilyTeam.com
Contact Information: https://solo.to/dowellfamilyteam
