May 2018 Market Update

New residential real estate activity has been relatively slow in the first quarter of 2018, yet housing is proving its resiliency in a consistently improving economy. Some markets have had increases in signed contracts, but the vast majority of the nation continues to experience fewer closed sales and lower inventory compared to last year at this time. Despite there being fewer homes for sale, buyer demand has remained strong enough to keep prices on the rise, which should continue for the foreseeable future.


Closed Sales decreased 7.4 percent for existing homes but increased 12.6 percent for new homes. Pending Sales increased 3.4 percent for existing homes but decreased 2.0 percent for new homes. Inventory decreased 24.5 percent for existing homes but increased 4.2 percent for new homes.


The Median Sales Price was up 10.1 percent to $185,000 for existing homes and 2.3 percent to $332,975 for new homes. Days on Market decreased 12.5 percent for existing homes but increased 3.8 percent for new homes. Supply decreased 25.0 percent for existing homes and 3.6 percent for new homes.


The Federal Reserve raised its key short-term interest rate by .25 percent in March, citing concerns about inflation. It is the sixth rate increase by the Fed since December 2015, and at least two more rate increases are expected this year. Borrowing money will be more expensive, particularly for home equity loans, credit cards and adjustable rate mortgages, but rising wages and a low national unemployment rate that has been at 4.1 percent for five months in a row would seem to indicate that we are prepared for this. And although mortgage rates have risen to their highest point in four years, they have been quite low for several years.


For more specific market numbers, click here.
*Information provided courtesy of KCRAR and Heartland MLS