December 2023 Kansas City Housing Market Update

Low inventory, elevated sales prices, and decades-high interest rates

continue to weigh on the housing market, causing sales of existing homes to

fall to their slowest pace since August 2010. According to the National

Association of REALTORS® (NAR), U.S. existing-home sales declined 4.1%

month-over-month and 14.6% year-over-year as of last measure, as

prospective buyers, faced with rising homeownership costs, wait for mortgage

rates, and home prices, to drop.


Closed Sales decreased 8.9 percent for existing homes and 14.9 percent for

new homes. Pending Sales decreased 0.7 percent for existing homes but

increased 34.4 percent for new homes. Inventory decreased 5.2 percent for

existing homes and 12.8 percent for new homes.


The Median Sales Price was up 7.9 percent to $277,250 for existing homes

and 0.5 percent to $537,538 for new homes. Days on Market increased 7.7

percent for existing homes and 57.1 percent for new homes. Supply increased

21.4 percent for existing homes but increased 4.8 percent for new homes.


Inventory remains at historically low levels nationwide, with only 1.15 million

homes for sale heading into November, a 5.7% decline compared to the same

time last year, for a 3.6 months’ supply at the current sales pace. The

shortage of available properties for sale has kept pressure on home prices,

which have continued to climb despite the slowdown in sales. According to

NAR, the U.S. median existing-home sales price increased 3.4% from a year

ago to $391,800, an all-time high for the month, with annual price gains

reported in all four regions of the country.


*Information and stats courtesy of KCRAR and Heartland MLS.