Just like last year at this time, prospective home buyers should expect a competitive housing market for the next several months. With payrolls trending upward and unemployment trending downward month after month in an extensive string of positive economic news, demand remains quite strong. Given the fact that gradually rising mortgage rates often infuse urgency to get into a new home before it costs more later, buyers need to remain watchful of new listings and make their offers quickly.
Closed Sales decreased 2.0 percent for existing homes but increased 7.0 percent for new homes. Pending Sales increased 8.9 percent for existing homes but decreased 17.8 percent for new homes. Inventory decreased 12.9 percent for existing homes but increased 5.5 percent for new homes. The Median Sales Price was up 7.5 percent to $200,000 for existing homes but decreased 2.5 percent to $349,925 for new homes. Days on Market decreased 19.0 percent for existing homes and 1.4 percent for new homes. Supply decreased 14.3 percent for existing homes and 1.9 percent for new homes.
Although home sales may actually drop in year-over-year comparisons over the next few months, that has more to do with low inventory than a lack of buyer interest. As lower days on market and higher prices persist year after year, one might rationally expect a change in the outlook for residential real estate, yet the current situation has proven to be remarkably sustainable likely due to stronger fundamentals in home loan approvals than were in place a decade ago.
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*Information provided courtesy of KCRAR and Heartland MLS