As we enter the final quarter of 2016, not much has changed since the year began. Market predictions have been, in a word, predictable. A relatively comfortable pace of activity has been maintained thanks to continuing low unemployment and mortgage rates. The one basic drag on market acceleration has been inventory decline. There is little to indicate that the low inventory situation will resolve anytime soon.
Closed Sales decreased 0.9 percent for existing homes but increased 2.9 percent for new homes. Pending Sales increased 15.6 percent for existinghomes and 12.0 percent for new homes. Inventory decreased 31.1 percent for existing homes and 2.3 percent for new homes.The Median Sales Price was up 6.5 percent to $168,275 for existing homes and 6.4 percent to $359,975 for new homes. Days on Market decreased 13.6 percent for existing homes but increased 3.5 percent for new homes. Supply decreased 34.3 percent for existing homes and 9.1 percent for new homes.
Builder confidence is as high as it has been in more than a decade, yet the pace of economic growth has been slow enough to cause pause. A low number of first-time buyer purchases and a looming demographic shift also seem to be curbing the desire to start new single-family construction projects. As older Americans retire and downsize, single-family listings are expected to rise. The waiting is the hardest part.
For more market numbers, click here *Information courtesy of KCRAR and Heartland MLS