KCRag Forum

Home prices in De Soto, for instance, shot up more than 22% in a year, reaching an average sale price of about $300,000 in November. Liberty saw an increase of about 16%; it was 14% in Oak Grove and Excelsior Springs. At the same time, pockets of the metro close to major Kansas City amenities, like downtown and the Country Club Plaza, continue to soar.

Yet the housing market is complex. And demand for higher-end properties is low, with homes listed above half a million dollars frequently sitting on the market for months. Similarly, new home construction has stalled. That’s because construction costs have generally outpaced the appreciation of existing home values — essentially meaning money spent on existing properties will go further than money spent on new builds.

“Builders can’t make a profit building a $250,000 home — they just can’t,” Gallager said.

Demand is strongest for homes that cost less than $350,000.