Median Sales Price Sees Largest Increase in 12 Months
2025 kicked off with the highest year-over-year percentage increase in median sales price over the past year, with resale home prices rising 11.9% compared to January 2024. December 2024 and January 2025 represent the two highest percentage increases in the 13-month span shown on the chart.
In terms of actual dollar amounts, the median sales price declined in January to $279,900 from December’s $290,000. While this may seem concerning, the 3.94% drop from December to January is the smallest percentage decline since 2021. Historically, January's median price is the lowest of the year, and since 2000, only once (in 2019) has the median price increased from December to January—so this was expected.
Listings on the Rise
Aside from a few snowy and cold days, January’s weather was relatively mild, contributing to a 6.67% increase in new listings compared to January 2024. Except for a slight 0.19% decline in November 2024, we’ve seen more listings each month since February 2024.
That said, February 2024 saw a significant surge in listings, making it possible that February 2025 may see slower growth or even a slight decline due to the high benchmark set last year.
Contracts and Closings
Contracts written rebounded in January with a 6.22% increase from December. While this is lower than the 15% increases seen in October and November, it’s still a positive sign that interest rates and the election have not significantly impacted buyer demand in our area.
Closings in January showed a modest 2.69% increase from the previous few month’s high increases. The contracts written in November and December have now closed, and given the slight dip in contracts written in December, a more measured increase in January closings was to be expected.
Looking ahead, January contracts will start closing in late February and into March, so we should see a pattern similar to the one we saw in August and September—when contract activity increased, but closings didn’t jump until October—we may see February 2025 remain level with last year, while March shows more notable growth.
Challenges Ahead
Several national factors could influence our local housing market:
Tariffs & Construction Costs – Could higher tariffs slow down new home construction and home renovations?
Government Downsizing – While this may have a bigger impact in Washington, D.C., potential ripple effects could be felt nationwide, including in Kansas and Missouri.
Agricultural Demand – Will reduced government aid programs lead to lower demand for crops, impacting local economies?
Mortgage Rates – Despite the Federal Reserve lowering the benchmark interest rate by a full percentage point since September, mortgage rates remain stubbornly above 7%.
As we move through 2025, these factors and many more will shape the market in ways that remain to be seen.
Kyle Niemann
Engel & Völkers Kansas City
(913) 900-0001
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