KANSAS CITY, Mo. — When it comes to the local housing market, interest rates are up while inventory is down.

On Wednesday, the Federal Reserve raised rates another quarter-point to a benchmark of 5.1%, the highest in 16 years. Yet, some realtors urge buyers and sellers not to worry when it comes to the housing market.

“Our market is busier and more booming than those of other realtors I’ve spoken to on a national level,” said Kansas City realtor Tina Groumoutis, whose niche is the Northland.

The metro’s housing market is on fire this year. Zillow ranked it in the Top 10 Hottest Houstin Markets for 2023 along with Dallas, Nashville, Miami, and Charlotte.

Groumoutis said she had one home on the market for just four hours before someone snatched it up, despite mortgage rages more than doubling since the Federal Reserve first raised rates more than a year ago to address inflation.

She adds that it’s making some people afraid to buy right now knowing their payment will be higher than what it was in 2022.

“While that is true, when we went through the Refi boom and rates were down to 3.5%, what do you think home prices did? That drew more buyers and created a market where there’s more buyers per house writing even more offers and driving up the cost of the homes,” she said.

Her advice for those looking to buy or sell is the same: be prepared. For buyers, Groumoutis said to shop around for agents and ask them what they do when there’s several offers on the table on a home they really want.

“Every seller isn’t looking for $20,000 over asking. Some are looking to close within a certain time frame,” she said. “Some are looking to make sure the deal is more solidified with a couple of addendums.”

Despite the current times, she encourages people to stay confident in who they work with and be clear about what they want.

“I think the climate is one of trepidation, but I don’t think it needs to be,” she said.

So, how will rising interest rates affect houses? Well, it depends on where you live. Quicken Loans said in areas where the demand is higher, like Kansas City, prices might hold but you would see a decrease in a multiple bidder scenario.

When it comes to real estate in Kansas City, Rocket Homes has the average home selling for $25,000 more when compared to this time last year.

If you’re in the market for a home, Groumoutis recommends having 5% in the bank plus closing costs for a home priced between $275,000 and $315,000.