August 2016 Market Update

Halfway through 2016, residential real estate markets are performing as predicted at the beginning of the year. Sales and prices have been going up in most areas, while the number of homes for sale and total months’ supply of inventory have been going down. Meanwhile, many sellers have been getting a higher percentage of their asking price, and supply continues to struggle to meet demand. The message may be repetitive, but it is largely positive.

 

Closed Sales increased 3.1 percent for existing homes and 13.9 percent for new homes. Pending Sales increased 9.1 percent for existing homes and 12.7 percent for new homes. Inventory decreased 31.0 percent for existing homes and 4.0 percent for new homes. The Median Sales Price was up 5.9 percent to $180,000 for existing homes and 3.0 percent to $342,950 for new homes. Days on Market decreased 18.3 percent for existing homes and 6.5 percent for new homes. Supply decreased 35.0 percent for existing homes and 12.7 percent for new homes.

 

The national unemployment rate recently dropped 0.3 percent to 4.7 percent, but some states felt more of a pinch in their own figures. Similarly, the low inventory situation is showing signs of strain in markets where there are few homes for purchase. With an interest rate increase still in the cards this year, combined with the American political landscape and global economic events, a cooldown could occur by winter. Presently, however, summery growth prevails as many locales are reaching near-record prices not seen in more than a decade.

 

For more detailed numbers, click here.

*Information courtesy of KCRAR and Heartland MLS