May 2021 Market Update
Normal spring increases in sales activity, coupled with relaxing COVID-19 policies, created a very busy March real estate market as buyer demand continued largely unabated in the face of rising home prices and mortgage rates.
Existing home seller and new construction activity continue to remain below levels necessary to bring the market back into balance, pointing to a busy and competitive buyer market in the coming months.
Closed Sales decreased 3.9 percent for existing homes but increased 9.2 percent for new homes. Pending Sales increased 17.1 percent for existing homes and 26.8 percent for new homes. Inventory decreased 64.1 percent for existing homes and 60.8 percent for new homes.
The Median Sales Price was up 11.2 percent to $228,000 for existing homes and 11.8 percent to $410,995 for new homes. Days on Market decreased 34.9 percent for existing homes and 46.0 percent for new homes. Supply decreased 64.7 percent for existing homes and 68.6 percent for new homes.
While many homebuilders are working to increase their activity, the cost of lumber and other materials and a backlogged supply chain continue to limit new home construction and have increased costs substantially. New methods of construction, including 3d printed homes, could speed construction and reduce costs in the future, but realistically are several years away from making a measurable impact in the market.
*Information courtesy of KCRAR and Heartland MLS