Nationally, existing home sales recently dropped to a 6-month low, falling 7.2% as buyers struggled to find a home amid rising prices and historic low inventory. Pending sales are also down, declining 4.1% as of last measure, according to the National Association of REALTORS®. Builders are working hard to ramp up production—the U.S. Census Bureau reports housing starts are up 22.3% compared to a year ago—but higher construction costs and increasing sales prices continue to hamper new home sales, despite high demand for additional supply.
Closed Sales increased 5.6 percent for existing homes but decreased 23.6 percent for new homes. Pending Sales decreased 1.8 percent for existing homes and 28.7 percent for new homes. Inventory decreased 30.9 percent for existing homes but increased 18.6 percent for new homes.
The Median Sales Price was up 14.7 percent to $260,000 for existing homes and 15.7 percent to $479,835 for new homes. Days on Market decreased 27.6 percent for existing homes and 21.3 percent for new homes. Supply decreased 33.3 percent for existing homes but increased 50.0 percent for new homes.
Across the country, consumers are feeling the bite of inflation and surging mortgage interest rates, which recently hit 4.6% in March, according to Freddie Mac, rising 1.4 percent since January and the highest rate in more than 3 years. Monthly payments have increased significantly compared to this time last year, and as housing affordability declines, an increasing number of would-be homebuyers are turning to the rental market, only to face similar challenges as rental prices skyrocket and vacancy rates remain at near-record low.*
*Information courtesy of KCRAR and Heartland MLS