Kansas City Housing Market Update – August 2025

Kansas City home prices are climbing again — but the story isn’t as simple as rising numbers. In August 2025, resale prices rose nearly 6% while new construction jumped over 8%. At the same time, homes are taking longer to sell and mortgage rates just dipped to the mid-6s, their lowest level in months. So, what does this all mean if you’re thinking about buying or selling a home in Kansas City right now? Let’s break it down.

A Quick Look at the Kansas City Market

August 2025 brought some interesting dynamics to the Kansas City housing market:

• Closed Sales: 3,266 resale homes sold (+1.3% year-over-year), while new construction dipped slightly with 280 sales (–1.4%).

• Median Prices: $310,000 for existing homes (+5.7%) and $555,000 for new construction (+8.5%).

• Days on Market: Resale homes averaged 35 days on market, a 35% jump from last year. New construction averaged 117 days, which is actually 11% faster than last year.

• Inventory: Up 11.9% for resale homes, giving buyers more choices. New construction inventory ticked up just 1.1%.

• List-to-Sale Ratios: Resale sellers received about 96.6% of asking price, while new construction sellers held stronger at 100.9%.

These numbers tell a story of two markets moving in slightly different directions: resale slowing down, and new construction holding firm.

Why This Matters for Buyers

For buyers, Kansas City’s late-summer market presents a unique opportunity.

• More Negotiating Power on Resale Homes
  With resale homes sitting longer (35 days vs. 26 days last August), buyers don’t have to rush into multiple-offer bidding wars like they did in previous years. Sellers are getting slightly less than their list price, meaning buyers may have room for concessions such as closing cost help or price adjustments.

• New Construction Still Moving
  Builders are pricing aggressively, with an 8.5% median increase year-over-year. However, many builders are also offering incentives — like rate buydowns, design credits, or appliance packages — to attract buyers. That makes new construction appealing, especially for relocation buyers who want something turnkey.

• Neighborhood Impact
  Hot spots like Johnson County, Lee’s Summit, and Platte County are still commanding strong demand, while outer areas such as Cass and Lafayette counties are seeing slower absorption and more negotiating flexibility.

Bottom line: Buyers today have more leverage in resale and still solid opportunities in new construction, especially if you pair that with today’s lower mortgage rates.

What Sellers Need to Know

If you’re selling a home in Kansas City right now, here’s what’s important:

• Pricing Strategy Is Everything
  Homes priced correctly are still moving. Overpricing leads to longer days on market, which can quickly hurt your bargaining position.

• Presentation Matters
  With nearly 12% more resale inventory than last year, your home has more competition. Professional staging, fresh paint, and standout marketing (high-quality photos, video, and virtual tours) are critical.

• Competing With New Construction
  Builders are holding prices higher while offering incentives, which can lure away potential buyers. Sellers in neighborhoods with new construction nearby need to pay close attention to this dynamic.

The key for sellers is to work with an agent who knows how to position your home strategically. Proper pricing and marketing can still secure strong offers, but the “list high and wait” strategy isn’t working in this environment.

Mortgage Rates: A Crucial Piece of the Puzzle

Mortgage rates are one of the biggest stories in August.

Rates have dropped into the mid-6s, the lowest levels we’ve seen in nearly a year. Earlier in 2025, we were looking at rates closer to 7.5%.

What does this mean in real terms?

• On a median-priced Kansas City home of $310,000, the difference between a 7.5% rate and a 6.5% rate can save you hundreds of dollars per month on your mortgage payment.

• That improved affordability is helping keep demand steady, even as prices rise.

For buyers, this is a welcome relief. For sellers, it means more buyers are qualifying and willing to stay active in the market.

Expanded Insight: Why Resale and New Construction Are Splitting

The Kansas City market right now is a tale of two segments:

1. Resale Homes

   • More inventory, more choices for buyers.

   • Longer days on market, meaning more room for negotiation.

   • Stronger in-core neighborhoods, slower in outer counties.

2. New Construction

   • Prices up sharply, but sales holding steady.

   • Builders offering incentives to offset affordability concerns.

   • Moving faster than a year ago, showing strong buyer demand for brand-new homes.

This split reflects what we’re seeing nationwide: older inventory is taking longer to move, while new homes continue to draw demand thanks to builder flexibility and modern features.

What This Means for Buyers and Sellers Right Now

If You’re a Buyer:

• Use the additional inventory to your advantage — especially in the resale market.

• Explore builder incentives if you’re considering new construction.

• Lock in rates while they’re in the mid-6s. Even a half-point makes a big difference in your monthly payment.

If You’re a Seller:

• Be realistic on price. Buyers are smart, and they know they have more options.

• Position your home to compete against both resale and new construction.

• Work with an agent who can market aggressively and negotiate strategically.

Final Takeaway

The Kansas City housing market in August 2025 is showing strength in prices, but a slowdown in speed. Buyers have more options, sellers need sharper strategies, and mortgage rates are creating a window of improved affordability.

In short: this isn’t the frantic, multiple-offer market of a few years ago — but it’s not a full buyer’s market either. It’s balanced, and that balance creates opportunities on both sides.

Thinking About Your Next Move?

Whether you’re buying, selling, or relocating to Kansas City, my team and I are here to help you make the smartest move possible.

📲 Schedule a free discovery call to create a personalized plan for your goals. 
📈Want a custom market snapshot of your neighborhood? Reach out and I’ll send one over.
🏡 Relocating to KC? Let’s talk about the best communities for your lifestyle.

The market is moving — let’s make sure you move with it.