How long can the residential real estate market go on like this? We are about two years into a national trend of dropping housing supply and increasing median sales prices. There are some regional variations to the story, but the shift to a predominantly seller’s market is mostly complete. Multiple-offer situations over asking price are commonplace in many communities, and good homes are routinely off the market after a single day. It is evident that a favorable economy keeps hungry buyers in the chase.
Closed Sales decreased 4.0 percent for existing homes and 1.8 percent for new homes. Pending Sales increased 4.7 percent for existing homes and 4.1 percent for new homes. Inventory decreased 26.8 percent for existing homes but increased 11.0 percent for new homes. The Median Sales Price was up 5.6 percent to $188,000 for existing homes and 3.6 percent to $360,748 for new homes. Days on Market decreased 15.6 percent for existing homes and 17.0 percent for new homes. Supply decreased 27.6 percent for existing homes and 2.0 percent for new homes.
Although the unemployment rate remains unchanged at its favorable national 4.3 percent rate, wage growth has not been rising at the steady clip that would be expected in an improving economy. Sales activity manages to keep churning along despite looming shortages in new construction. Lower price ranges are starting to feel the effects of the supply and demand gap, as first time buyers scramble to get offers in at an increasing pace.
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*Information provided courtesy of KCRAR and Heartland MLS