For much of the country, the first quarter of 2019 provided several disruptive weather patterns that contributed to less foot traffic toward potential home sales. Coupled with low affordability, higher prices and an inventory situation in its infancy of recovering from record lows – not to mention several more days of wintry weather in April – slower sales persisted across most residential real estate markets. However, buyers are beginning to return in force this spring. For well-priced homes in desirable locations, competition is fierce.
Closed Sales decreased 6.7 percent for existing homes but increased 1.1 percent for new homes. Pending Sales increased 7.0 percent for existing homes but decreased 9.8 percent for new homes. Inventory decreased 5.5 percent for existing homes but increased 3.7 percent for new homes. The Median Sales Price was up 5.8 percent to $200,000 for existing homes and 4.9 percent to $359,975 for new homes. Days on Market increased 2.4 percent for existing homes and 6.3 percent for new homes. Supply decreased 5.3 percent for existing homes but increased 9.1 percent for new homes.
The national unemployment rate dropped to 3.6 percent during April 2019, the lowest level since 1969. A historically low unemployment rate can provide reassurance to wary consumers. But in order for sales to increase on a grand scale, buyers will need more spending power, or sellers will need to reduce prices to land where buyers are most active. Neither situation is likely to occur in 2019, yet inventory is straining to keep pace in the most competitive price ranges.
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*Information provided courtesy of KCRAR and Heartland MLS