September 2016 Market Update
Even as prices rise in many communities, homes are selling faster now than they have in the past several years. This creates a situation where buyers need to move fast in order to secure homes, and they may have to pay more for them. While increasing prices generally coax more selling activity, there has been some hesitancy among potential sellers who worry that they will not be able to buy a desirable and reasonably priced home once they sell.
Closed Sales decreased 8.5 percent for existing homes and 4.0 percent for new homes. Pending Sales increased 9.1 percent for existing homes but decreased 16.7 percent for new homes. Inventory decreased 33.3 percent for existing homes and 2.7 percent for new homes.
The Median Sales Price was up 6.9 percent to $179,000 for existing homes and 5.6 percent to $348,300 for new homes. Days on Market decreased 25.0 percent for existing homes and 3.2 percent for new homes. Supply decreased 37.5 percent for existing homes and 9.4 percent for new homes.
Low housing supply has already prevented an outright national boon in sales activity, despite a continuation of near record-low mortgage rates and an unemployment rate under 5.0 percent deep into 2016. The issue is not purchasing power. Many areas are falling behind last year’s closed sales totals simply because of lack of available inventory. As this continues, higher prices may put a deeper squeeze on the current buyer pool.
For more specific numbers in the KC metro, click here. *Information courtesy of KCRAR and Heartland MLS