Heading into 2023, there was speculation about a potential recession that could trigger a housing market downturn. Some predicted significant drops in home prices, which might have left you feeling hesitant about buying a home in Kansas City.
However, the reality turned out differently: home prices surged beyond the usual levels. Brian D. Luke, Head of Commodities at S&P Dow Jones Indices, noted that 2023 saw home price gains surpassing the average annual appreciation of the past 35 years.
To illustrate last year’s growth, the graph below, using data from Freddie Mac, showcases how home prices have trended annually since 1980, with the dotted line representing the long-term average for appreciation:
The key takeaway? Home prices tend to rise consistently. As Forbes points out, the U.S. real estate market has a reliable history of increasing in value over time. Since 1980, home prices have experienced drops only during the housing market crash in 2008 (depicted in red in the graph). Thankfully, the current market landscape in Kansas City differs significantly. With insufficient available homes to meet buyer demand and homeowners holding substantial equity, the risk of a foreclosure wave causing price declines is low.
The consistent appreciation of home values, except during the housing market crash, highlights homeownership as a wise investment strategy. By owning a home in Kansas City, you possess an asset that typically grows in value over time, contributing to the growth of your net worth.
If you are financially secure and prepared for homeownership costs and responsibilities, purchasing a home in Kansas City could be a prudent decision.
Bottom Line Home prices generally appreciate over time, making homeownership a savvy investment, provided you are ready and able. Let’s discuss your objectives and explore available opportunities in the Kansas City area.
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
