January brings out a rejuvenated crop of buyers with a renewed enthusiasm in a new calendar year. Sales totals may still inevitably start slow in the first half of the year due to ongoing inventory concerns. Continued declines in the number of homes available for sale may push out potential buyers who simply cannot compete for homes selling at higher price points in a low number of days, especially if mortgage rates continue to increase.
Closed Sales decreased 3.0 percent for existing homes but increased 19.5 percent for new homes. Pending Sales increased 6.0 percent for existing homes and 5.4 percent for new homes. Inventory decreased 29.8 percent for existing homes but increased 1.2 percent for new homes.
The Median Sales Price was up 10.3 percent to $160,000 for existing homes and 5.5 percent to $358,750 for new homes. Days on Market decreased 14.5 percent for existing homes and 18.4 percent for new homes. Supply decreased 34.6 percent for existing homes and 8.6 percent for new homes.
In case you missed it, we have a new U.S. president. In his first hour in office, the .25 percentage point rate cut on mortgage insurance premiums for loans backed by the Federal Housing Administration (FHA) was removed, setting the table for what should be an interesting presidential term for real estate policy.
FHA loans tend to be a favorable option for those with limited financial resources. On a brighter note, wages are on the uptick for many Americans, while unemployment rates have remained stable and relatively unchanged for several months. The system is ripe for more home purchasing if there are more homes available to sell.
For more market numbers, click here *Information courtesy of KCRAR and Heartland MLS