February 2026 Residential Market Update Highlights for the Kansas City Region

Market Pulse: February 2026

Kansas City’s housing market continued its early-year momentum through February. Buyers remained active, new listings expanded sharply, and closings accelerated as the winter pipeline worked its way through the system. Prices continued to trend higher year over year, reinforcing a steady and constructive start to 2026.

Prices: Steady appreciation continues

Median resale price: $300,000

Year over year: +5.6%

Home values continued to climb modestly compared with last year. The $300,000 median reflects continued stability in the resale market, with steady demand supporting pricing even as more homes begin to come online. One thing I found interesting is the median sales price has matched both December 2025 and January 2026’s number where usually we see a little variation in these numbers.

New Listings: Sellers step forward

New listings: 3,210

Year over year: +14.19%

Inventory growth remained one of the biggest stories this winter. Sellers brought significantly more homes to market than a year ago, continuing the trend that began in January. This increase is helping rebalance supply while still keeping inventory relatively tight compared to historical norms.

Demand: Buyers remain engaged

Contracts written (pendings): 2,639 (+16.93% YoY)

Closings: 2,087 (+14.36% YoY)

Buyer demand stayed strong in February. Pending contracts rose nearly 17 percent compared to last year, showing buyers are actively positioning ahead of the spring market. Closings also jumped more than 14 percent year over year as the stronger January pipeline converted into completed transactions.

What this means for you

Sellers

The market continues to reward homes that launch well.With more listings entering the market, pricing and presentation matter even more.Well prepared homes are still attracting strong interest early in the year.

Buyers

Inventory is improving, which provides more options than last year.However, demand is also rising quickly, especially for well priced homes.Being prepared and ready to act remains a key advantage.

Everyone

Kansas City’s housing market continues to move into the spring season with healthy momentum. Supply is improving, demand is rising, and price growth remains steady rather than overheated. As we approach the traditionally busy spring market, the underlying fundamentals suggest another active year ahead.

Headwinds: Interest rates and global uncertainty

While the market has shown encouraging momentum early in the year, several broader economic forces could create pressure as we move deeper into 2026.

Mortgage rates have moved higher again in recent weeks, tracking an increase in the 10 year Treasury yield. The 10 year Treasury is the primary benchmark used by lenders to price long term mortgages, and when that yield rises, mortgage rates tend to follow. Recent volatility in global markets has pushed Treasury yields upward and lifted the average 30 year mortgage rate back toward the mid 6 percent range.

The spread between the 10 year Treasury and 30 year mortgage rates has also been a key theme in the housing market over the past few years. Historically this spread averages roughly 1.7 to 1.8 percentage points, but it widened significantly during the inflation surge and financial volatility of the past few years. While the spread has gradually normalized, the recent market uncertainty has pushed it wider again by about 0.20 to 2.127 from close to 1.9 just a few weeks ago, which effectively raises borrowing costs for buyers. (as of 3/15/2025 - 10 year treasury: 4.283, 30 year conventional mortgage 6.41% according to mortgage news daily)

Geopolitical developments are another factor to watch. Escalation of the conflict with Iran has contributed to higher oil prices and volatility in bond markets, both of which can put upward pressure on interest rates. Higher energy costs can also strain household budgets more broadly, leaving less room for housing payments and discretionary spending.

For housing markets like Kansas City, these forces do not necessarily stop activity, but they can slow momentum by affecting affordability and consumer confidence. As we move into the spring market, interest rate stability and broader economic conditions will remain important variables influencing how strong demand ultimately becomes.