Why More Sellers Are Sitting on the Sidelines in 2026 and What That Means in Kansas City
Over the past few weeks, several national outlets including Realtor.com and Redfin have reported something that feels familiar. Inventory is improving compared to the ultra-tight pandemic years, but it is still well below normal levels. And a surprising number of homeowners who might otherwise sell are choosing not to.
The reason is not mysterious. Many of them are holding mortgages with rates in the 2 to 4 percent range. Trading that for today’s higher financing costs feels like voluntarily increasing their monthly expense. So instead of moving up, downsizing, or relocating, they are staying put.
Nationally, this “rate lock” effect continues to limit how many homes actually come to market. And even though buyer demand has cooled from peak frenzy levels, the imbalance between supply and demand has not disappeared.
Here in Kansas City, especially in price points above $500,000, we are seeing the same dynamic play out in a more nuanced way.
What We’re Seeing in the Kansas City Metro
In Johnson County, parts of Brookside, and many Northland neighborhoods, well-positioned homes are still moving. Not overnight. Not with twenty offers. But thoughtfully priced, move-in ready properties are attracting serious attention.
At the same time, the number of truly exceptional listings remains limited. When inventory is selective, buyers become selective. They will wait. They will compare. But when the right property surfaces, they move decisively.
This is particularly true above $700,000, where the buyer pool is smaller but more financially secure. Many are less rate sensitive and more lifestyle driven. Schools, architecture, lot size, proximity to amenities. These are the drivers.
The national headlines may suggest a cooling market. Locally, it feels more like a market that has regained its composure.
The Fosgate Perspective
Here is what I believe many sellers are misunderstanding right now.
Some assume that because rates are higher, buyer demand has vanished. That simply is not true in Kansas City’s upper price tiers. Demand has become rational, not absent.
On the other side, some buyers are waiting for a dramatic price correction that may never materialize in our market. Kansas City did not experience the kind of unsustainable appreciation seen in parts of the coasts. Our fundamentals remain steady. Employment is stable. Migration into the metro continues at a healthy pace.
If I were advising a close friend who was considering selling a $650,000 to $900,000 home this year, I would tell them this. You do not have to rush. But if you are going to move in the next two years anyway, today’s inventory environment may quietly work in your favor because you are competing with fewer sellers.
And if I were advising a buyer, I would say this. Focus less on trying to time rates perfectly and more on securing the right property. The right home, in the right location, rarely feels like a mistake five years later.
What This Means If You’re Actually Moving
If you are selling in Kansas City, pricing discipline matters more than ever. Buyers are informed. They are patient. They are not desperate. But they are still active.
If you are buying, it is worth evaluating your long-term plan rather than short-term rate fluctuations. If your horizon is seven to ten years, the entry point becomes less about today’s headline and more about whether the home truly fits your life.
And perhaps most importantly, ignore the noise that treats every national housing report as a turning point. Real estate is hyperlocal. Kansas City does not move in lockstep with San Francisco or Austin.
The market today feels measured. Thoughtful. Balanced in a way we have not seen in several years.
For buyers and sellers operating above $500,000, that balance can be an advantage. It allows room for negotiation, due diligence, and clear thinking.
Sometimes the best markets are not the loud ones.
They are the steady ones.
Kansas City buyers and sellers would do well to recognize the difference.
