August tends to mark the waning of housing activity ahead of the school year. Not all buyers and sellers have children, but there are enough parents that do not want to uproot their children during the school year to historically create a natural market cool down before any actual temperature change. Competition is expected to remain fierce for available listings. Savvy sellers and buyers know that deals can be made well into the school months, as household formations take on many shapes and sizes.
Closed Sales decreased 1.9 percent for existing homes and 11.3 percent for new homes. Pending Sales increased 5.5 percent for existing homes but decreased 3.0 percent for new homes. Inventory decreased 28.1 percent for existing homes but increased 9.2 percent for new homes. The Median Sales Price was up 5.7 percent to $185,000 for existing homes but decreased 3.7 percent to $349,900 for new homes. Days on Market decreased 17.6 percent for existing homes but remained flat for new homes. Supply decreased 31.0 percent for existing homes and 1.9 percent for new homes.
The prevailing trends lasted through summer. This was expected, since there have not been any major changes in the economy that would affect housing. Factors such as wage growth, unemployment and mortgage rates have all been stable. Every locality has its unique challenges, but the whole of residential real estate is in good shape. Recent manufacturing data is showing demand for housing construction materials and supplies, which may help lift the ongoing low inventory situation in 2018.
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*Information provided courtesy of KCRAR and Heartland MLS