January 2024 Kansas City Housing Market Update

U.S. existing-home sales rose from a 13-year low, climbing 0.8% from the

previous month and breaking a five-month streak in which sales declined,

according to the National Association of REALTORS® (NAR). Despite the

increase, sales were down 7.3% compared to the same period last year, as

affordability challenges continue to hinder prospective buyers. Most of this

period’s closed sales went under contract in October, when mortgage rates

were at a two-decade high. With rates having dropped more than a full

percentage point since then, existing-home sales may continue to pick up in

the months ahead.


Closed Sales decreased 5.9 percent for existing homes and 17.7 percent for

new homes. Pending Sales increased 7.6 percent for existing homes and 25.0

percent for new homes. Inventory decreased 6.2 percent for existing homes

and 14.4 percent for new homes.


The Median Sales Price was up 6.4 percent to $266,000 for existing homes

but decreased 6.5 percent to $503,061 for new homes. Days on Market

increased 3.3 percent for existing homes and 54.9 percent for new homes.

Supply increased 7.7 percent for existing homes but increased 7.7 percent for

new homes.


Low levels of inventory continue to impact U.S. home sales, offering few

options for aspiring buyers to choose from. Going into December there were

1.13 million units for sale, down 1.7% from the previous month but up 0.9%

from the same period last year, for a 3.5 months’ supply at the current sales

pace. As a result, sales prices remain high nationwide, with NAR reporting the

median existing-home price rose 4% annually to $387,600 as of last measure,

the fifth consecutive month of year-over-year price gains. Homebuyer

demand is picking up, and without a significant increase in supply, experts

believe home prices will likely remain elevated for some time to come.


*Information and stats courtesy of KCRAR and Heartland MLS.