After several years of high mortgage rates and hesitation from buyers, momentum is quietly building beneath the surface of the housing market. Sellers are reappearing. Buyers are re-engaging. And for the first time in what feels like forever, there’s movement happening again.

No, it’s not a surge. But it is a shift – and it’s one that could set the stage for a stronger year in 2026.

So, what’s driving the comeback? Here are three big trends that are slowly breathing life back into the housing market right now.

1. Mortgage Rates Have Been Coming Down

Mortgage rates are always going to have their ups and downs – that’s just how rates work. Especially with the general economic uncertainty right now, some volatility is to be expected. But, if you zoom out, it’s the larger trend that really matters most.

And overall, rates have been trending down for most of this year (see graph below):

And in just the last few months, we’ve seen the best rates of 2025. According to Sam Khater, Chief Economist at Freddie Mac:

“On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year, showing that affordability is slowly improving.”

Here’s why that matters for you. This shift changes what you can actually afford. It means lower borrowing costs and more buying power. Take this as an example.

Data from Redfin shows a buyer with a $3,000 monthly budget can now afford roughly $25,000 more home than they could one year ago. That’s a big deal. And it’s just one of the reasons why activity is picking up.

2. More Homeowners Are Ready To Sell

For a while, many homeowners stayed put because they didn’t want to give up their low mortgage rate. That “lock-in effect” kept inventory tight. And while plenty of homeowners are still staying where they are today, the number of rate-locked homeowners is starting to ease as rates come down. Life changes are becoming a bigger part of what’s driving more people to move, and that’s opening up more inventory.

Data from Realtor.com shows just how much the number of homes for sale has grown. And the really interesting part is that the market is approaching levels that haven’t been seen for the past six years (see the blue on the graph below):

That return to more normal inventory levels is a really good thing. It gives buyers more options than they’ve had in years. And it’s helping to bring the market closer to balance.

3. More Buyers Are Re-Entering the Market

And it’s not just sellers making moves. With more options and slightly better affordability, buyers are getting back in the game, too. The Mortgage Bankers Association (MBA) reports purchase applications are up compared to last year, a clear signal that demand is building again (see graph below):

And experts think this momentum will continue. Economists from Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR) all forecast moderate sales growth going into 2026.

Now, this recovery won’t happen overnight. It’s not a flood of activity. But it is the start of steady improvement going into 2026. And that’s something a lot of people have been waiting for.

Bottom Line

After several slower-than-normal years, the market is finally starting to turn a corner. Declining mortgage rates, more listings, and growing buyer activity all point to a market gaining real traction.

Connect with a local real estate agent about what’s changing and how you can make the most of it in 2026.

The Greater Kansas City housing market kept up its momentum this fall, showing a steady blend of growth and balance across key areas! Here’s a quick look at what’s happening across our region:

🏡 Average Sales Price: $399,212 — up 12.2% year-over-year!
Prices continue to climb, reflecting strong demand and sustained buyer confidence across the metro.

📈 Closed Sales: 3,263 — up 2.6%
More homes are crossing the finish line this month, signaling continued activity despite seasonal shifts.

📋 Pending Sales: 2,947 — down 5.9%
A small dip in pending contracts suggests a slight cooling pace as we head toward the holidays — a typical trend for this time of year.

🕒 Days on Market: 41 — up 5.1%
Homes are taking just a bit longer to sell, giving buyers a touch more breathing room in an otherwise competitive market.

🏘️ Total Inventory: 8,714 — up 10.1%
Inventory is on the rise! More choices for buyers, and a healthy sign of balance returning to the market.

📦 Months Supply: 2.8 — up 3.7%
Still a seller-leaning market, but edging closer to a more even playing field.

💰 Percentage of Original Price Received: 97.0% — virtually unchanged
Sellers are still capturing nearly all of their asking price — a testament to solid pricing strategies and strong demand.

✨ In summary:
Kansas City’s real estate market remains vibrant as we close out 2025. Rising prices and expanding inventory create both opportunities and smart timing for buyers and sellers alike. Whether you’re planning to list, buy, or simply stay informed — now’s the time to watch the market closely and plan ahead for the new year.

📞 Thinking about making a move? Let’s connect and discuss your best strategy in today’s evolving market.

A Confident Market Heading into Fall

The Johnson County housing market continues to show solid momentum as we move through the second half of 2025. Both home prices and sales activity are trending upward, reflecting ongoing confidence among buyers and sellers alike.

📊 Countywide Highlights

According to the latest data from the Heartland Multiple Listing Service, Q3 2025 showed notable gains in several key metrics compared to the same period last year:

• Median Sales Price: $475,000 (+4.4%)

• Average Sales Price: $571,465 (+5.1%)

• Closed Sales: 2,641 (+13.4%)

• Active Inventory: 1,698 (+4.9%)

• Days on Market: 32 (–5.9%)

• Percent of Original Price Received: 99.5% (–0.8%)

• Months of Supply: 2.2 (–8.3%)

Homes are still selling quickly and close to list price, showing that buyer demand remains strong and sellers are pricing their homes competitively.

🌟 Standout ZIP Codes

Several communities across Johnson County saw impressive growth this quarter:

• 66018 (De Soto): Median price jumped 33.1% to $398,500, paired with a strong 34% increase in average sales price.

• 66206 (Prairie Village): Average sales price climbed 34% to $970,262, underscoring continued demand for classic neighborhoods with charm and convenience.

• 66227 (Western Shawnee): Median price rose 13.6% to $633,350, with closed sales up over 40%, making it one of the county’s most active submarkets.

• 66013 (Southern Overland Park): Median price increased 16.5% to $700,000, fueled by steady new construction and high-end resale activity.

💬 What It Means for Buyers and Sellers

For sellers, the market remains favorable—homes that are well-presented and accurately priced continue to attract strong offers in a relatively short timeframe.

For buyers, there’s a bit more inventory to explore than last year, but competition is still present in most price ranges. Pre-approval and readiness to act quickly remain key advantages in securing the right home.

📈 Looking Ahead

Johnson County continues to set the pace for the greater Kansas City area, offering a stable and desirable market for homeowners and investors alike. With steady appreciation and consistent buyer activity, the local market is positioned for a confident finish to 2025.

Written by Gregory Weis, REALTOR® | Coldwell Banker Realty
Whether you’re thinking about buying, selling, or simply staying informed, I’m here to provide expert insight and guidance on the Kansas City real estate market.
📞 Let’s connect today to talk about your next move.