October 2016 Market Update
Closed sales began to cool for much of the country last month, and conventional wisdom indicates that year-over-year declines are going to be present for the remainder of the year, given the low inventory situation in most markets. Demand is certainly present and has created competitive situations that have kept prices up. Rental prices are also up, which may lure more toward homeownership.
Closed Sales increased 6.1 percent for existing homes and 9.2 percent for new homes. Pending Sales increased 5.8 percent for existing homes but decreased 2.9 percent for new homes. Inventory decreased 33.9 percent for existing homes and 5.4 percent for new homes.
The Median Sales Price was up 6.7 percent to $176,000 for existing homes and 10.8 percent to $363,854 for new homes. Days on Market decreased 16.4 percent for existing homes and 11.4 percent for new homes. Supply decreased 36.8 percent for existing homes and 13.0 percent for new homes.
As inventory continues to drop, the contradictions of today’s market are evident. Sellers should feel confident enough to list homes at fair prices and receive meaningful offers in a healthy residential real estate and overall economic environment. However, there may be lingering worry over the availability of move-in ready homes to replace what was sold. On a brighter note, building permits are trending upward. That news should be weighed against the fact that the highest level of activity is in multifamily rentals.
For more specific numbers in the KC metro, click here. *Information courtesy of KCRAR and Heartland MLS