In 2019 home prices were up again in most markets. Buyer demand continues to be strong but with tepid seller activity still in many locations, total sales are lower than they would normally be in a more balanced market. While up from their recent lows a few months ago, mortgage rates end the year close to three-quarters of a percent lower than a year ago, helping to improve affordability and offset rising home prices.
Closed Sales increased 16.5 percent for existing homes and 13.7 percent for new homes. Pending Sales increased 7.3 percent for existing homes and 28.7 percent for new homes. Inventory decreased 21.3 percent for existing homes and 14.2 percent for new homes. The Median Sales Price was up 10.2 percent to $203,795 for existing homes but decreased 0.3 percent to $388,885 for new homes. Days on Market decreased 8.5 percent for existing homes but increased 19.4 percent for new homes. Supply decreased 20.0 percent for existing homes and 6.3 percent for new homes.
With low mortgage rates, low unemployment, and continued wage growth, home buyer activity is expected to remain healthy into the new year. New construction has been on the rise in 2019 and is expected to continue into 2020, but many experts note that the country is still not building enough new units to quench demand. It remains to be seen whether existing homeowners will be enticed to sell by higher home prices, which could finally bring the overall housing market into greater balance.
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*Information provided courtesy of KCRAR and Heartland MLS