As we move into 2025, the Kansas City real estate market will experience unique challenges and opportunities shaped by mortgage rate trends, inventory levels, and broader economic factors. With mortgage rates holding steady in the mid-7% range and expected to drop modestly, buyers and sellers in Kansas City will need to navigate an evolving market that is both constrained by supply and poised for modest price growth. 
1. Mortgage Rates and Affordability
Mortgage rates have fluctuated significantly over the past few years, and as of early 2025, they remain higher than the historic lows seen before the pandemic. As mortgage rates are expected to stay in the mid-7% range and drop modestly, many buyers on the sidelines during the past few years might be encouraged to re-enter the market. In Kansas City, where the median home price has steadily risen, potential buyers must assess their affordability against these higher borrowing costs.
Practical Solution: Realty ONE Group Esteem agents have the knowledge and resources to help clients navigate different mortgage options, including adjustable-rate mortgages (ARMs) and home equity loans. We’ll also connect you with trusted mortgage brokers to explore the best financing options that suit your needs. Whether you’re a first-time buyer or experienced, we’ll guide you through every step, ensuring you make the most financially sound decision.
2. Housing Inventory and Market Activity
The housing inventory in Kansas City is expected to remain tight, and many buyers will face challenges finding homes that meet their needs. However, with more homes expected to come onto the market in 2025, there will be more opportunities for buyers willing to act quickly. The key for homebuyers will be to stay informed and responsive as new listings appear, especially given the ongoing competition from other potential buyers.
Practical Solution: Our agents can access cutting-edge real-time technology that informs you about new listings. We ensure you’re among the first to see the latest homes by leveraging our networks and tools. We’ll help you strategize to get an offer when you find the right property, giving you a competitive edge in a fast-moving market.
3. Rising Home Prices and New Construction
Home prices in Kansas City have been steadily rising and are projected to grow at a modest rate of 2.3% in 2025. While this means homebuyers may face higher prices than they would have in previous years, it also means that the market may stabilize, making it a good time for buyers who can afford the current rates.
Practical Solution: If you’re concerned about rising prices, Realty ONE Group Esteem agents can help you identify neighborhoods with the potential for appreciation. Additionally, we offer expert advice on new construction homes, helping you navigate the pros and cons of building versus buying resale. For those interested in new homes, we’ll assist in finding reputable builders and securing the best deals possible.
4. Homebuyers and Sellers in a Shifting Market
Sellers in Kansas City face unique challenges. While many homeowners are reluctant to sell due to their low mortgage rates locked in over the last few years, changing life circumstances—like job moves, family needs, and financial shifts—will continue to drive inventory. Kansas City sees more homes listed for various reasons, including the “three Ds”: death, divorce, and debt.
Practical Solution: For sellers, it’s crucial to market their homes effectively and price them correctly in today’s market. Our agents specialize in crafting tailored marketing strategies that include staging advice, professional photography, and digital advertising to ensure your home stands out. We’ll help you understand the nuances of pricing in a fluctuating market, ensuring you get the best return on your investment.
5. The Role of Realty ONE Group Esteem Agents in 2025
At Realty ONE Group Esteem, our mission is to help you navigate the complexities of the Kansas City housing market in 2025 and beyond. With our focus on community, connection, coaching, care, and coolture, we offer a personalized approach to each client’s needs. Whether you are buying, selling, or looking to explore your real estate options, our agents are committed to providing exceptional service.
Our agents’ deep ties to the Kansas City community mean we understand local market trends and can offer insights beyond the numbers. With 100% commission models and coaching that empowers agents to make bold decisions, we work with clients to ensure their real estate journey is smooth and successful.
FAQs About the Kansas City Housing Market in 2025
Q: What can I expect from mortgage rates in Kansas City in 2025?
A: Mortgage rates are expected to stay in the mid-7% range through most of 2025, with a slight decrease possible as the year progresses. However, rates will likely remain higher than the historically low rates in previous years. It’s essential to consider your long-term financial goals when deciding whether to buy or refinance.
Q: Will home prices continue to rise in Kansas City?
A: Home prices are expected to grow modestly at around 2.3% annually through September 2025. However, local market dynamics can vary. If you want to buy, it’s a good time to act before prices increase.
Q: How can I find the right home in a competitive market?
A: Real estate in Kansas City can be competitive, but by working with a knowledgeable agent from Realty ONE Group Esteem, you’ll gain access to the latest listings, a robust network of connections, and expert guidance on how to craft a winning offer. We also comprehensively understand local neighborhoods to help you choose the correct location.
Q: Should I buy a new construction or a resale home?
A: Both options have advantages. New construction can offer modern designs and energy-efficient features but may be more expensive. Resale homes can sometimes offer more competitive pricing but may require some updates or repairs. Our agents will help you weigh these factors based on your needs and preferences.
Q: How can Realty ONE Group Esteem agents help me sell my home?
A: Realty ONE Group Esteem agents specialize in creating customized selling strategies. We’ll guide you through pricing your home, preparing it for sale, and marketing it effectively to attract the right buyers. Our deep understanding of the Kansas City market ensures that your home is positioned to sell quickly and for top dollar.
