December 2022 Kansas City Market Update

Existing home sales declined nationwide for the eighth consecutive month,
falling 1.5% as of last measure, according to the National Association of
REALTORS® (NAR), with sales down nearly 24% from the same period last
year. Pending home sales also declined, dropping 10.9% month-to-month,
exceeding economists’ expectations. Stubbornly high inflation and soaring
borrowing costs have eroded buyer purchasing power and have caused the
market to cool rapidly this year.

Closed Sales decreased 25.3 percent for existing homes and 5.5 percent for
new homes. Pending Sales decreased 28.5 percent for existing homes and
49.5 percent for new homes. Inventory increased 5.7 percent for existing
homes and 59.4 percent for new homes.

The Median Sales Price was up 7.1 percent to $267,750 for existing homes
and 22.2 percent to $578,492 for new homes. Days on Market increased 15.0
percent for existing homes and 64.0 percent for new homes. Supply increased
8.3 percent for existing homes and 78.1 percent for new homes.

The US housing market is undergoing a major shift, and affordability continues
to be an obstacle for buyers and sellers. Mortgage rates have doubled since
March, and home prices remain elevated due to a limited supply of homes,
although price gains are slowing at a quickening pace. As a result, many
homeowners are waiting until market conditions improve to sell their home,
while other sellers are increasingly cutting prices and offering concessions to
attract a greater number of buyers.

 

*Information and stats courtesy of KCRAR and Heartland MLS.