January 2018 Market Update

The facts of residential real estate have remained consistent in 2017. In year-over-year comparisons, the number of homes for sale has been fewer in most locales, and homes have been selling in fewer days for higher prices. This hasn’t always been true, but it has been a common enough storyline to make it an overarching trend for the year.

Closed Sales increased 4.1 percent for existing homes and 23.9 percent for new homes. Pending Sales increased 10.7 percent for existing homes and 13.7 percent for new homes. Inventory decreased 24.2 percent for existing homes but increased 10.7 percent for new homes. The Median Sales Price was up 9.1 percent to $180,000 for existing homes but decreased 1.6 percent to $349,950 for new homes. Days on Market decreased 15.1 percent for existing homes but increased 2.7 percent for new homes. Supply decreased 24.0 percent for existing homes but remained flat for new homes.

 

New tax legislation could have ramifications on housing. The White House believes that the tax reform bill will have a small impact on home prices, lowering them by less than 4 percent, and could conceivably boost homeownership. The National Association of REALTORSĀ® has stated that eliminating the mortgage interest deduction could hurt housing, as the doubled standard deduction would reduce the desire to take out a mortgage and itemize the interest associated with it, thus reducing demand. This is a developing story.

 

For more specific market numbers, click here.
*Information provided courtesy of KCRAR and Heartland MLS