The Real Estate Market Is Shifting in Overland Park, KS, and Lee's Summit, MO: What October’s Sales Data Means for You

For the first time in over three years, existing home sales increased year over year, reaching a seasonally adjusted annual rate of 3.96 million in October.

But what does this mean for Overland Park and Lee's Summit residents?

Let’s break it down! While 2024 may still go down as a year with historically low home sales, October’s rebound could signal that the housing market is starting to recover.

The National Association of Realtors (NAR) identified three significant trends driving this shift, and they have clear implications for homeowners and buyers in our local markets:

1. More Homes Are Selling, and Prices Are Still Rising
   Homeowners, this is great news! In October, the national median existing-home price climbed 4% year-over-year to $407,200, marking the 16th straight month of price increases.

Here in Overland Park and Lee's Summit, median home prices followed a similar trend, with October showing a steady rise in values. This means your home equity is likely growing, offering an opportunity to sell at peak value.

NAR Chief Economist Lawrence Yun predicts that home prices will continue to rise, projecting a 9% year-over-year increase in 2025 and a 13% increase in 2026. For sellers, this means now might be the perfect time to act, with increasing demand and growing equity on your side.

2. There’s More Inventory to Choose From
   After years of tight inventory, the housing market is finally offering buyers more breathing room. Nationally, housing inventory rose 19% in October compared to last year.

In Overland Park and Lee's Summit, the inventory of available homes has also expanded, giving buyers more options and creating a more balanced market.

• For Sellers: This means more competition. To stand out, you’ll need to price your home competitively and ensure it’s staged and marketed effectively.
• For Buyers: More inventory translates to less pressure to make a rushed decision. You now have the chance to find a home that fits your needs without the same bidding frenzy seen in recent years.

3. Buyers Are Returning to the Market
   For the first time since July 2021, home sales are up year-over-year. Even with mortgage rates hovering around 6.78% for a 30-year fixed-rate loan, economic stability and job growth are bringing buyers back.

The good news? Rates are stabilizing and may dip into the lower 6% range by 2025, according to Yun. If you’re a motivated seller, this surge in demand—combined with rising home values and growing inventory—creates a prime opportunity to sell.

Final Thoughts for Overland Park and Lee's Summit

For Sellers:
With home prices rising and demand picking up, now could be a great time to list your property. However, increased inventory means your home needs to shine. Focus on staging, high-quality photos, and strategic pricing to attract serious buyers.

For Buyers:
You finally have more options! While rates remain higher than a few years ago, they’ve stabilized, and inventory is increasing. To maximize your chances of success, get pre-approved, set a clear budget, and stay patient as you explore your options.

Ready to take the next step? Let’s talk about your unique real estate goals. Whether you're buying, selling, or just exploring the market, I’m here to help. Connect with me here to schedule a discovery call, and let’s navigate this exciting market together!

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