Housing affordability continues to be a major roadblock for market
participants, with mortgage rates more than double compared to this time last
year. Buyers are delaying home purchases in hopes rates will drop, while
many sellers are holding off on listing their homes due to weakening buyer
demand, unwilling to trade in their current lower rates for significantly higher
borrowing costs on their next property. As a result, existing-home and
pending home sales have continued to slow as we move into winter.
Closed Sales decreased 30.7 percent for existing homes and 11.3 percent for
new homes. Pending Sales decreased 27.5 percent for existing homes and
47.3 percent for new homes. Inventory increased 10.9 percent for existing
homes and 63.8 percent for new homes.
The Median Sales Price was up 3.4 percent to $256,000 for existing homes
and 13.6 percent to $535,000 for new homes. Days on Market increased 28.6
percent for existing homes and 61.5 percent for new homes. Supply increased
20.0 percent for existing homes and 81.8 percent for new homes.
With home sales down, nationwide housing inventory was at 3.3 months’
supply heading into November, up from 2.4 months from this time last year,
according to the National Association of REALTORS®. Although buyers have
more options to choose from, home prices remain high, and soaring
borrowing costs have caused monthly payments to increase significantly, with
the average homebuyer paying 77% more on their loan per month compared
to the same period a year ago, according to Realtor.com.
*Information and stats courtesy of KCRAR and Heartland MLS.