The number of homes for sale, days on market and months of supply were all down in year-over-year comparisons in a majority of the country for the entirety of 2017, as was housing affordability. And although total sales volumes were mixed, prices were consistently up in most markets. Buyers may not benefit from higher prices, but sellers do, and there should be more listing activity by more confident sellers in 2018. At least that would be the most viable prediction for an economic landscape pointing toward improved conditions for sellers.
Closed Sales decreased 5.2 percent for existing homes and 10.4 percent for new homes. Pending Sales increased 19.3 percent for existing homes and 43.8 percent for new homes. Inventory decreased 24.7 percent for existing homes but increased 11.0 percent for new homes. The Median Sales Price was up 7.9 percent to $177,000 for existing homes and 2.3 percent to $346,789 for new homes. Days on Market decreased 14.0 percent for existing homes but increased 23.2 percent for new homes. Supply decreased 23.8 percent for existing homes but increased 3.7 percent for new homes.
Unemployment rates have remained low throughout 2017, and wages have shown improvement, though not always to levels that match home price increases; yet housing demand remained incredibly strong in 2017, even in the face of higher mortgage rates that are likely to increase further in 2018. Home building and selling professionals are both cautiously optimistic for the year ahead. Housing and economic indicators give reason for this optimism, with or without new federal tax legislation.
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*Information provided courtesy of KCRAR and Heartland MLS