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Kansas City has shown sluggish but consistent improvement in its residential real estate market over the past few months.  However, the commercial real estate in Kansas City continues to worsen as office vacancies continue to increase and landlords have trouble collecting rents and retaining tenants.  However, many real estate experts have noted that the recent expansion and improvement of the Kansas City economy may offer hope for the improvement of the Kansas City real estate market as well.

According to iMarket News.com, Kansas City has experienced some “modest” improvements in its economy over the past few months.  During the months of October and November, Kansas City has posted slight improvements in its economy based upon consumer spending, manufacturing, and other business activity including real estate and construction activity.  Economic experts believe that Kansas City is showing significant signs of recovery from the economic recession that began in 2008.

The Kansas City Star has also reported that the residential real estate in Kansas City is showing signs of improvement and offering hope for the future.  Realtors posted a surge in home sales during the month of November by about 63 percent from that of November of the previous year.  However, almost all home sales consist of resale, with only about 250 of the total home sales in Kansas City being those of new homes.  The average sales price of an existing home also rose by about 9 percent to $148,018, but the average sales price of a new home dropped by about 14 percent to $280,350.  Currently, Kansas City has a 6.5 month inventory of existing homes and a 10.2 month supply of new homes.  Aside from slow sales of new homes, luxury home markets continue to struggle even more, with very few prospective buyers willing to pay that much money for a home given the current economic situation.  Nevertheless, recent increases in affordable housing projects offer hope for increased real estate activity in the coming months.