March 2023 Kansas City Housing Market Update

The US housing market began the year in a state of rebalance, with many
buyers and sellers remaining cautious while they wait to see where the market
is headed. Nationally, pending sales rose 2.5% month-to-month, marking the
first increase since May, while sales of existing homes fell 1.5% as of last
measure, according to the National Association of RealtorsĀ® (NAR). Demand
for housing persists, but higher mortgage interest rates have cut into housing
affordability, with total home sales down 17.8% last year compared to 2021.
Closed Sales decreased 24.0 percent for existing homes and 33.7 percent for
new homes. Pending Sales decreased 3.0 percent for existing homes and
27.5 percent for new homes. Inventory increased 14.7 percent for existing
homes and 74.7 percent for new homes.

The Median Sales Price was up 4.3 percent to $245,000 for existing homes
and 19.0 percent to $555,402 for new homes. Days on Market increased 42.3
percent for existing homes and 36.1 percent for new homes. Supply increased
42.9 percent for existing homes and 103.1 percent for new homes.

As sales slow, time on market is increasing, with the average home spending
26 days on market as of last measure, according to NAR. Seller concessions
have made a comeback, giving buyers more time and negotiating power when
shopping for a home. Although home prices remain high, mortgage rates
declined steadily throughout January, falling to their lowest level since
September, sparking a recent surge in mortgage demand. Lower rates should
aid in affordability and may soon lead to an uptick in market activity ahead of
the spring selling season.

*Information and stats courtesy of KCRAR and Heartland MLS.