The primary story, both nationally and in local submarkets, is a dwindling months’ supply of inventory. The cure, of course, is more inventory. But new construction has been lagging during this opportune moment, and sellers of existing homes are not yet hitting the market in droves. The heart of the selling season has yet to begin, so we’re still optimistically watching for an increase in activity in the coming months.
Closed Sales decreased 1.1 percent for existing homes but increased 19.1 percent for new homes. Pending Sales increased 18.0 percent for existing homes and 15.5 percent for new homes. Inventory decreased 35.4 percent for existing homes and 7.1 percent for new homes.
The Median Sales Price was up 4.3 percent to $145,000 for existing homes but decreased 2.0 percent to $338,037 for new homes. Days on Market decreased 11.1 percent for existing homes and 9.4 percent for new homes. Supply decreased 43.2 percent for existing homes and 20.6 percent for new homes.
National housing starts were up by 10.8 percent at the end of 2015 when compared to 2014, and the unemployment rate is holding low and steady at or near 4.9 percent. Meanwhile, mortgage rates continue to astound below 4.0 percent and we have witnessed an unprecedented 70 consecutive months of private-sector job growth. As consumers navigate their options, competition for the best available properties should be profound, especially if the market remains hobbled by a lack of supply.
Click here to view more specific numbers for the KC metro market as of the end of February 2016. If you would like more specific numbers about your neighborhood, feel free to call or email us and we’d be happy to run a more in-depth report.
*Information courtesy of KCRAR and Heartland MLS