Kansas City Housing Market Slowing Down

A recent report shows the housing market is looking bleak across the country. If you’ve read the news this year, that’s nothing new.

Certainly not with the myriad bad credit mortgage concerns swirling around the current marketplace and threatening the economy.

But it appears the Kansas City housing market could be holding its own - ironically, by being the best at losing market value.

A new report in late june doesn’t show dollar signs for homeowners in a lot of areas. A new report from PMI, one of the leading U.S. providers of mortgage insurance, shows home prices are dropping more in the first quarter of this year than at any other quarter in the last 17 years.

What does that mean for Missouri mortgage holders in the area?

According to the report, prices will not appreciate in our area as much as it has in the past. Not surprisingly, the riskiest markets are located in the areas that saw a rapid price appreciation.

That means where home prices went up so fast that residents saw a reduction in affordability and then a rapid decrease in appreciation.

That’s not going down in K.C. Five such markets are in California, four in Florida. Las Vegas and the Phoenix housing market ranked up there as well.

But for Kansas City, the price appreciation is expected to drop about 13 percent. In the first quarter last year the house appreciation was at close to 5 percent.

The first quarter of this year it dropped to 2.5 percent. Not great, but not shabby in a market where many areas are seeing home price depreciation as values tank.

SOURCE: MyfoxKC.com