Home prices were up during summer across the nation in year-over-year comparisons. With the economy on full mend, Federal Reserve Chair Janet Yellen has predicted a fine-tuning of monetary policy before the year ends. In tandem with the improved economy, the unemployment rate for July 2015 remained at 5.3 percent for the second month in a row. It is widely believed that interest rates will go up before the year is over. Generally, this does not happen without careful consideration for the impact such a move will have on residential real estate.
Closed Sales increased 4.6 percent for existing homes and 6.7 percent for new homes. Pending Sales increased 22.9 percent for existing homes and 33.7 percent for new homes. Inventory decreased 25.3 percent for existing homes and 9.3 percent for new homes. Days on Market decreased 17.6 percent for existing homes but increased 24.6 percent for new homes.
Statistics released by the U.S. Census Bureau and the Department of Housing and Urban Development indicate that newly owner-occupied housing in July 2015 rose 10.1 percent compared to last year. It is now at the highest level the market has seen since October 2007. This bodes well for the eventual landing of a flock of potential buyers currently holding in a rental pattern. As ideal summer weather diverges toward autumn, we will begin to see some seasonal relaxation, but the market should still look positive when compared to last year.
Click here to view more specific numbers for the KC metro market as of the end of August 2015. If you would like more specific numbers about your neighborhood, feel free to call or email us and we’d be happy to run a more in-depth report.
*Information courtesy of KCRAR and Heartland MLS