Jana's Take on What the 2024 Election Means for Kansas City's Real Estate Market

After the unsurprising "reality tv show" that was the recent Presidential Debate, I thought it might be high time to talk about how this election, both national, state and local (!!) will impact our Kansas City Real Estate Market.  So, hey there! My name is Jana Jeffery and I'm a real estate broker in Kansas & Missouri servicing the Kansas City metro area. And, I have opinions. Just a couple. Ready? Buckle up! The upcoming 2024 election cycle is set to significantly impact real estate sales, with some clear and controversial outcomes on the horizon. With both presidential candidates being polarizing and well, ready for retirement (🙏), the national focus may overshadow but not diminish the critical influence of local elections on the housing market. Local candidates and races will likely have a more significant impact on housing through regulatory changes, unemployment factors, and local economic opportunities and challenges. Market Uncertainty: Consumer Confidence: As we edge closer to election day, expect a palpable tension among buyers and sellers. The uncertainty surrounding potential progressive or conservative changes in leadership and policy at the national level will create hesitancy, potentially stalling transactions. This environment is ripe for dramatic market shifts, where confidence—or lack thereof—will play a pivotal role in shaping market activity. Interest Rates: Federal Reserve Actions: The looming threat of interest rate hikes by the Federal Reserve is a hot topic. In an election year, the Fed’s actions are under intense scrutiny. Any move to raise rates further could cool the housing market even more significantly. However, a conscientious administration might advocate for policies that keep rates low, promoting affordability and encouraging homeownership, especially among first-time buyers and middle-income families. Stock Market Volatility: Investment Behavior: The election’s impact on the stock market will be profound. Historical patterns show increased volatility during election years, and 2024 is likely to be no exception. Sharp swings in the stock market will influence consumer wealth and confidence, directly affecting their ability to invest in real estate. This volatility will be a critical factor, making the market unpredictable and ripe for strategic maneuvering. Housing Policies: Policy Proposals: With polarizing candidates proposing vastly different housing policies, if any, the election outcome will either boost or hinder the market. Initiatives aimed at increasing affordable housing, expanding homeownership opportunities, and providing tax incentives for home improvements could lead to a post-election surge in sales. Conversely, policies perceived as restrictive or economically damaging might stifle growth. Consumer Sentiment: Political Climate: The charged political atmosphere will polarize consumer sentiment. An election result perceived as positive for economic growth and social equity could unlock a wave of market activity, while a contentious or divisive outcome might lead to widespread caution and a slowdown in transactions. The election’s influence on consumer sentiment cannot be overstated, as it will set the tone for market behavior. Local Impacts: Local Markets: The election’s impact will be felt unevenly across regions, with local candidates and races playing a critical role. Urban centers with diverse economies and progressive political leanings might be more resilient, while areas heavily dependent on conservative policies might experience heightened sensitivity to political changes. Local regulatory changes, socioeconomic factors, and economic opportunities will significantly influence housing markets. Cities and states with strong local leadership focused on affordable housing, economic development, and social equity will likely see more robust housing markets. Long-term Expectations: Consumer Sentiment: The upcoming election will significantly shape consumer sentiment and local regulations, impacting the housing market. A conscientious candidate advocating for social equity and sustainability could boost consumer confidence, leading to increased market activity and a positive housing outlook. Local governments that prioritize affordable housing, favorable zoning laws, and sustainable development are likely to see heightened demand and market growth. Conversely, areas with restrictive policies may experience stagnation and cautious consumer sentiment, leading to slower market activity. Buyers and investors will closely watch local government actions, with proactive local policies driving positive trends. Ultimately, while national outcomes matter, local regulations and consumer confidence will be key determinants of the housing market's future. Strategic Responses: Buyers: Smart buyers will navigate this turbulent period by locking in mortgage rates ahead of potential hikes or waiting strategically for post-election market corrections. Progressive policies aimed at improving affordability and accessibility could make homeownership more attainable for many. Sellers: Sellers will need to act decisively, potentially accelerating listings to capitalize on pre-election demand or waiting for post-election clarity. Expect aggressive pricing strategies and competitive marketing as sellers vie for a limited pool of buyers in an uncertain environment. Investors: Real estate investors will need to be particularly astute, shifting focus to stable or undervalued markets and anticipating policy changes. Progressive policies promoting affordable housing and green initiatives could open new investment opportunities, making 2024 a pivotal year for investment decisions. Your local candidate races will be most impactful to pay attention to! In my opinion, while the 2024 presidential election will undoubtedly influence the real estate market, local elections and candidates will play an even more critical role. This period of uncertainty and potential upheaval will force all market participants to rethink their strategies and brace for significant changes. Whether this leads to a boom or a bust will depend heavily on the election outcomes and the subsequent economic policies implemented. Buckle up, because the real estate market is in for a transformative ride!   To obtain a list of candidates running for state and local goverment and political office in the Kansas City regional area (Kansas and Missouri), please email info@royalfoxkc.com.   This content is the opinion of Jana Jeffery, residential and commercial real estate broker and managing broker of Real Broker, LLC in Kansas and Missouri and are in no way a reflection of the beliefs or opinions of Real Broker, its agents, affiliated businesses, leaders, haters, or closeted lovers or any of the authors' affiliated companies, professional partners, vendors, clients, friends, family, pets, or infestations. It's simply one woman's well-educated, independent/liberal-leaning opinion. So, don't come at me. lol ;) kthxluvubye ♥

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Market Trends in Kansas City - The Q2, 2024 View

The real estate market in the second quarter has shown signs of relative robustness and stability. But... it ain't over yet! The steady number of active listings, coupled with rising numbers of pending and sold properties, indicates a vibrant market characterized by strong buyer interest and effective pricing strategies. The relatively stable number of expired listings further supports the notion of a healthy market, where properties are appropriately priced and meet buyer demand. Market Prediction for the Rest of 2024: Given these trends and the impending presidential election, the market is likely to see some volitility but working toward a stable and positive trajectory for the rest of 2024. Strong buyer engagement and a steady supply suggest that demand will remain relatively robust, leading to higher levels of transactions than seen in the first part of the year. The stable number of active and expired listings indicates a balanced market, capable of navigating potential volatility with confidence. As we approach a period of political uncertainty, the real estate market's demonstrated resilience and stability offer a hopeful outlook. The market is expected to maintain its current health, though we will see some volatility as the election approaches, with steady activity and strong buyer interest across all price categories. This environment should provide confidence to both buyers and sellers, fostering a dynamic yet stable market for the remainder of the year, even amidst the inevitable challenges of a presidential election year. Let's dig into the details... Analyzing the trends across active, pending, expired, and sold listings from April to June provides a comprehensive overview of the real estate market, offering insights into potential future directions for the remainder of 2024. Active Listings: The number of active listings across all price categories remains remarkably stable, indicating a balanced market with consistent supply and demand. This stability suggests that the market is neither oversaturated nor experiencing a shortage of available properties, which typically contributes to predictable and steady market conditions. Pending Listings: The upward trend in pending listings across all price ranges signals strong buyer engagement and a robust pipeline of transactions moving towards closing. This increase in pending transactions indicates healthy market activity and suggests that many properties are being actively pursued by buyers, likely leading to higher sales in the near term. Expired Listings: Expired listings remain relatively stable, with slight decreases in the mid-range and upper mid-range categories. This trend suggests improved market conditions, with fewer properties failing to sell within their listing periods. The stable to declining number of expired listings indicates effective pricing strategies and strong buyer interest, reducing the likelihood of properties languishing on the market. Sold Listings: The significant increase in sold listings across all price categories reflects strong market demand and a high rate of successful transactions. The upward trend in sales is a positive indicator of market health, suggesting that properties are meeting buyer expectations and closing at a steady pace. Overall Market Summary: Combining these trends, the real estate market from April to June shows signs of robustness and stability. The steady number of active listings, coupled with the rising number of pending and sold listings, indicates a vibrant market with strong buyer interest and effective pricing strategies. The relatively stable number of expired listings further supports the notion of a healthy market where properties are appropriately priced and meet buyer demand. Market Prediction for the Rest of 2024: Given these trends, the market is likely to continue its stable and positive trajectory for the rest of 2024. The strong buyer engagement and steady supply suggest that demand will remain robust, leading to continued high levels of transactions. The stable number of active and expired listings indicates that the market is balanced, with no immediate signs of volatility or major shifts. Therefore, the real estate market is expected to maintain its current health, with steady activity and strong buyer interest across all price categories. This environment should provide confidence to both buyers and sellers, fostering a dynamic yet stable market for the remainder of the year. BREAKING IT ALL DOWN SOLD LISTINGS Summary: Overall, our areas' sold listings point to a positive and active real estate market across all price categories. The consistent increase in sold listings suggests strong buyer demand and effective market conditions, leading to successful transactions. This upward trend in sold listings reflects a healthy and dynamic real estate environment where properties are meeting buyer expectations and closing at a steady rate. The positive trends across all price ranges indicate a confident market, with robust activity and a high rate of successful sales. Trends amongst sold listings from April to June reveals a positive and dynamic real estate market across the various price categories. In the $0 - $259,999 price range the trend in sold listings shows a steady increase. This upward trajectory indicates strong buyer interest and a high rate of successful transactions. The rising number of sold listings in this segment reflects robust demand, suggesting that properties in this price range are highly sought after and are moving quickly from listing to sale. The $260,000 - $499,999 exhibits a significant rise in sold listings from April to June. This strong upward trend indicates high market activity, with many properties in this price range successfully selling. The increase in sold listings in this segment suggests a vibrant market with active buyer engagement, reflecting strong demand and effective pricing strategies. In the $500,000 - $999,999 price range the trend in sold listings shows a noticeable increase, with some fluctuations. The overall rise in sold listings indicates a dynamic market with substantial buyer interest. Despite minor variations, the trend suggests that properties in this price range are in demand and are successfully closing, contributing to a healthy market environment. For high-end properties ($1,000,000+), the trend in sold listings also demonstrates an increase, though more moderate compared to the lower price range. This steady rise in sold listings indicates a healthy luxury market with consistent buyer activity. The increase suggests that high-value properties are attracting buyers and closing at a stable rate, reflecting confidence in the luxury segment.   ACTIVE LISTINGS Summary: The data indicates a steady and balanced market for active listings across all price classes, with no significant monthly variations. This trend points to a consistent real estate environment where supply and demand are in equilibrium. Specifically: $0 - $259,999: The number of active listings remains relatively steady, with a slight increase from 913 in April to 934 in June. This consistency indicates a stable demand and supply in this lower price bracket. $260,000 - $499,999: Similar to the lowest price class, active listings in this mid-range category show minimal variation, hovering around 935 to 936 listings each month. This steadiness implies balanced market conditions. $500,000 - $999,999: The active listings in this price range are also stable, consistently around 777 to 779 listings. The slight decrease from April to June suggests a well-balanced market with no major shifts in this segment. $1,000,000+: The active listings remain unchanged at 247 throughout April, May, and June. This stability suggests a consistent high-end market with no significant influx or reduction in listings.   PENDING LISTINGS Summary: Pending listings indicate a dynamic and active real estate market, with varying levels of buyer engagement across different price categories. The upward trend in pending listings across all segments points to a strong transactional activity, reflecting a market where properties are actively being pursued and are progressing towards closing. This increased activity in pending listings suggests a positive outlook for the real estate market, with robust buyer interest and a healthy pace of transactions across all price ranges. Analyzing the trends amongst pending listings from April to June reveals some notable patterns across various price categories. Unlike active listings, the trend in pending listings shows more variation, suggesting different dynamics at play in the market. In the $0 - $259,999 price range pending listings increased significantly from April to June. This upward trend indicates a strong buyer interest and a high rate of transactions moving toward closing in this segment. The increasing number of pending listings suggests that properties in this price range are in demand and are being actively pursued by buyers. In the $260,000 - $499,999 price range, we've seen a noticeable rise in pending listings from April to June. This trend indicates strong market activity. The rising trend in pending listings suggests that this price range is experiencing high buyer engagement and a brisk pace of transactions. In the $500,000 - $999,999 price range, pending listings also show an increasing trend, though with some fluctuations. The overall rise in pending listings indicates a dynamic market with active buyer interest. Despite the slight variations, the trend suggests a healthy demand for properties in this price range, with many transactions advancing towards closure. For properties priced $1,000,000+, the trend also shows an increase, though a more moderate one compared to lower price ranges. This suggests a healthy level of activity in the luxury market, with more high-value properties progressing towards closing over the three-month period. The moderate increase in pending listings in this segment reflects a steady demand for luxury homes and a stable market environment. EXPIRED LISTINGS Summary: Trends among expired listings indicates a relatively stable market with some positive signs of improvement. The stability in the lower and high-end segments suggests that properties are generally well-priced and meeting buyer demand. The declining trend in the mid-range and upper mid-range categories reflects a healthier market with effective pricing and marketing strategies leading to fewer expired listings. This trend suggests that the real estate market is becoming more efficient and balanced, with properties across all price ranges increasingly finding buyers before their listings expire. In the $0 - $259,999 price range, the trend in expired listings remains relatively stable with only minor fluctuations. This stability indicates that the majority of properties in this price range are either selling or remaining active, with only a small number of listings expiring. The consistent level of expired listings suggests that properties in this segment are generally priced appropriately and are meeting market demand. Properties in the $260,000 - $499,999 price range have shown a slight decline in expired listings over the three-month period. This downward trend suggests that more properties in this segment are selling before their listing contracts expire. The decline in expired listings points to an improvement in market conditions, with properties being better aligned with buyer preferences and market expectations. In the $500,000 - $999,999 category, the trend in expired listings also shows a slight decline with some fluctuations. The decreasing trend indicates that fewer properties in this price range are failing to sell within the listing period, suggesting a healthy demand and effective pricing strategies. Despite minor variations, the overall trend implies that the market for upper mid-range properties is becoming more efficient, with fewer listings expiring. For high-end properties ($1,000,000+), the trend in expired listings is also relatively stable but at a low level. This low and steady number of expired listings in the luxury market indicates that high-value properties, while fewer in number, are either finding buyers or are being maintained as active listings for longer periods. The low expiration rate suggests that luxury properties are either well-matched to buyer expectations or that sellers are more willing to keep these properties on the market for extended durations. Overall Market Summary: Combining these trends, the real estate market from April to June shows signs of robustness and stability. The steady number of active listings, coupled with the rising number of pending and sold listings, indicates a vibrant market with strong buyer interest and effective pricing strategies. The relatively stable number of expired listings further supports the notion of a healthy market where properties are appropriately priced and meet buyer demand. Market Prediction for the Rest of 2024: Given these trends and the upcoming presidential election, the market is likely to continue its stable and positive trajectory for the rest of 2024. The strong buyer engagement and steady supply suggest that demand will remain robust, leading to continued high levels of transactions. The stable number of active and expired listings indicates a balanced market, capable of navigating potential volatility with confidence. As we approach a period of political uncertainty, the real estate market's demonstrated resilience and stability offer a hopeful outlook. The market is expected to maintain its current health, with steady activity and strong buyer interest across all price categories. This environment should provide confidence to both buyers and sellers, fostering a dynamic yet stable market for the remainder of the year, even amidst the inevitable challenges of a presidential election year.     This content is the opinion of Jana Jeffery, a residential and commercial real estate broker and managing broker of Real Broker, LLC in Kansas and Missouri and are in no way a reflection of the beliefs or opinions of Real Broker, its agents, affiliated businesses, leaders, haters, or closeted lovers or any of the authors' affiliated companies, professional partners, vendors, clients, friends, family, pets, or infestations. It's simply one woman's well-educated, independent opinion. So, don't come at me. lol ;) kthxluvubye ♥

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