KSHB 41 reporter Olivia Acree covers portions of Johnson County, Kansas. Share your story idea with Olivia.
Kansas ranks sixth in the nation for how quickly residents can save for a home down payment, taking just over 10 years on average according to a recent survey. However, prospective homebuyers in Johnson County face a different reality where home prices nearly double the state median.
Alex Reed, a realtor with Ivy Home - KW Kansas City, explained the timeline makes sense for some buyers.
"10 years of saving that could make complete sense if you started maybe at 23, 24 and then now you're purchasing at 33, 34," Reed said.
But in Johnson County, where the median home price hits around twice the state average, that timeline can stretch much longer. For example, the median sales price in Overland Park during the month of July was $525,000.
"It's shifted because of just the interest rates staying high and the market here staying high as well. So home prices haven't really dropped," Reed said.
Down payment trends, however, have shifted. Reed often sees buyers putting down 3.5% to 10%, whereas 20 years ago, it was more common to put down up to 20%. Even with lower down payments and assistance programs, buyers in Johnson County looking for a first home around $300,000 are looking at saving $15,000 to $45,000 just to get started.
"It's probably sticker shock. 'How are we going to do that?' Reed said.
He thinks it’s important for buyers to be flexible. Whether that means exploring townhomes, looking farther from city centers, or adjusting expectations.
"What can you live with, what can you live without, and what are you willing to invest into your home?" Reed said.
He also encourages buyers to think about homes as long-term investments, even if the initial cost is steep.
"You want to live your life while you're making money,” said Reed. “So you have to kind of look at your house as another bank account.”
Reed expects the housing market in Johnson County could change if interest rates shift. Federal Reserve Chair Jerome Powell indicated recently that market conditions may warrant rate cuts, but more information will be available when the Federal Open Market Committee meets in mid-September.
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