May 2025 Residential Market Update Highlights for the Kansas City Region

As we head into the busy summer season, here’s a closer look at how our Kansas City-area housing market performed in May—and what to watch for as we move into June and July.

Median Sales Price Growth Remains Strong

May median sales price for single-family resale homes continued its climb toward the typical June peak, landing at $312,000. That figure represents:

• 4.5% growth over May 2024

• A $16,000 increase from April 2025

Month-over-month, this $16,000 bump equals a 5.4% rise—well above the long-term spring average. Historically, May rarely posts declines, and this level of gain underscores robust buyer demand heading into the height of the season.

New Listings Are on a Hot Streak

After a mid-winter lull, new listings in May shot up 13.42% compared to last year. It’s our third straight month flirting with double-digit gains (April’s 9.64% is effectively 10%), and in the past 13 months, only November 2024 and February 2025 saw declines.

A deeper dive into year-to-date listings (from June 2023 onward) shows:

• Resale homes have rebounded steadily since the 2023 low, though remain just below pre-COVID volumes.

• New construction listings are climbing too, but still trail the 2018 peak by about 350 units.

• Combined totals sit roughly 2,500 units shy of the 2015–2018 average—but at current growth rates, we could catch up within a few years.

  
  

Contracts and Closings Keep Pace

May broke a five-month neutral streak with a 16% year-over-year jump in contracts written. More listings over the past quarter have eased buyer competition—when homes are priced right and staged well, they’re still drawing multiple offers.

Expect closings to follow suit in June and July, given the typical six-week lag between contract and close. Last year’s June saw a slight dip; this year’s surge in contract volume points to a potentially strong summer closing season.

Potential Challenges Ahead

While our local fundamentals remain solid, several national factors could introduce headwinds:

• Tariffs & Construction CostsThe recent 90-day tariff extensions have offered some breathing room, but material costs remain elevated and could squeeze new-build supply.

• Mortgage RatesThe 10-year Treasury yield is drifting lower—often a precursor to mortgage rate relief. We’ll be watching Fed guidance closely.

• Global UncertaintyEscalating conflicts can cut both ways: safe-haven buying may push rates down, yet consumer confidence can waver, delaying big purchases.

• 
  

What’s Next?Keep an eye on June median prices and listing counts to see if our traditional summer peak holds—and whether this spring’s momentum translates into another record-setting season. As always, feel free to reach out with any questions about buying, selling, or what these trends mean for your plans.

Engel & Völkers Kansas City 913-900-0001