2022 Recap: A crazy year with ups and downs

Did anyone else reallllllly enjoy a slow December?

I did. Because, wow. 2022 was wild. We went from low interest rates, high prices, bidding wars, races to be the first to see a listing to…

almost nothing.

Ok, that’s a bit of a stretch. Maybe it wasn’t nothing. It was more like what a “normal” real estate year feels like. Interest rates hiked a few times leading to temporary breaks in the crazy. Then it would pick up again. Then the fed would meet. Then the mortgage rates would catch up. Then it would slow down. Rinse. Repeat. You get it.

Despite the crazy, I had a great year! I worked with over a dozen clients buying, selling and investing. I was lucky to work with repeat clients, new referral clients, first time homebuyers, second homebuyers, and everything in-between.

And, after a nice little holiday break (complete with virus-mandated rest) I’m back at it for 2023.

What does the crystal ball say for Kansas City Real Estate in 2023?

Well, for starters, houses are still selling! Unfortunately, higher interest rates don’t magically increase inventory. We are STILL in a low inventory situation, albeit better than we were. We are still at a total dearth of affordable housing. Those first time homebuyer well-priced homes in KC are still selling fairly quickly-maybe not with 20 offers, but still going under contract within a week or two.

I’ve had multiple lenders tell me rates should have plateaued, maybe decrease a bit and settle in the upper 5’s to low 6’s this spring, so we will see what happens there. Currently, for a Conventional 30-year mortgage, rates are at about 6.5 percent.

I would like to see more owner-occupant buyers successfully locking down contracts instead of investors scooping up as many properties as possible at cheap, cash prices for short-term rentals. This is important because our neighborhoods are dependent on a good mix of owners and long-term rentals. I don’t think short-term rentals are necessarily bad, but they have wreaked havoc on some of the most-popular Midtown Kansas City neighborhoods, destroying much of the fabric that makes our neighborhoods unique.

Climate, Geography and Culture: KC has it all

I also think we are going to start hearing more and more about climate migration over the next year as places experience more extreme flooding, drought and fire. Kansas City was ranked the 15th best city for climate change. Also, indirectly related are new transplants who are looking for affordable places to live, while also having access to arts and culture. We are uniquely positioned as a city to capitalize on transplants bringing new ideas, especially with our geographical location a three-hour flight from either coast.

2023 will be a big year for KC. I can feel it. We have city council elections and the prospect of a new council coming in, gives me hope that we will continue to improve our city for all.