Affordability constraints have continued to limit homebuying activity this
summer, with existing-home sales falling 3.3% month-over-month nationwide
as of last measure, according to the National Association of REALTORS®
(NAR). Mortgage rates have approached 7% in recent months, leading many
prospective buyers to put their home purchase plans temporarily on hold. But
higher rates have also kept many existing homeowners from listing their
homes for fear of giving up the low-rate mortgages they locked in a few years
ago, when rates were significantly lower.
Closed Sales decreased 20.6 percent for existing homes and 3.3 percent for
new homes. Pending Sales decreased 12.8 percent for existing homes but
increased 62.3 percent for new homes. Inventory decreased 25.1 percent for
existing homes but increased 1.4 percent for new homes.
The Median Sales Price was up 1.7 percent to $289,900 for existing homes
and 2.7 percent to $540,475 for new homes. Days on Market increased 42.9
percent for existing homes and 142.9 percent for new homes. Supply
decreased 7.1 percent for existing homes but increased 14.0 percent for new
homes.
Despite a drop in existing-home sales, home prices have remained near
record highs, with a national median sales price of $410,200 as of last
measure, 0.9% below the all-time high of $413,800 recorded in June 2022,
according to NAR. With only 3.1 months’ supply heading into July, the lack of
inventory has boosted competition among buyers and put upward pressure
on sales prices, especially in more affordable markets, where competition for
homes remains particularly strong.
*Information and stats courtesy of KCRAR and Heartland MLS.