The Kansas City Regional Association of Realtors project that we will see fluctuations in in sales and prices until the fall and then they expect prices and sales to start increasing slowly but steadily. They also expect as the inventor of New homes continues to fall, the price of the new homes will start to rise.
One key factor that is keeping the market where it from rebounding very quickly is the high unemployment. And they expect that interest rates which are at historic lows will start to go back up getting a lot of buyers to get off the fence and buy before they go to high.
If we look at the Kansas City Market:
Average Sales Price of a new home in May was $296,768 which is a little lower than a year ago. There were price increases in Cass, Clay/Ray, Jackson & Plat with decreases in Johnson, Leavenworth, Miami, and Wyandotte. Existing home prices averaged $167,487 which was a 4% increase over last year. All counties except Cass saw an increase in the average sale price for existing homes over June of last year.
Home Sales saw sales of New homes of 308 properties which is a 23% increase from 2009 and New home sales increased in June by 31% over May . Existing home sales were down 5% over last year and down 13% over last month. June’s combined total sales were down 10% from last month but only down 3% last year.
Inventory saw a 37% decrease in new homes from last year and existing is 3% higher that last year and just 3 % higher than April. Overall for May we have a 5% increase in total inventory for 2010 over 2009.
Supply of Homes in the Kansas City Region is determined by taking the “inventory” and dividing it by the 1”2 month average of number of sales.” As a rule of thumb a 5-6 month supply of homes on the market is balanced, over 6 months is a buyer’s market and less than 5 months is s sellers market. Combined supply of homes in the metro is at about 7.7 which is up slightly over the 7.4 in May. Existing homes is at 7.7, up slightly from 7.4 last month and the new home supply was 8, down from the 8.3 supply in May. The good news is that these numbers are lower than 2009 and the existing and combined totals are nearing a balanced market.
So if we look at housing trends in the nation as a whole we see that Unit sales were up 28.3% in June 2010 over 2009. The average home price was up 8.8 over last May and we saw a continued 10 month trend of stronger sales and raising prices
Looking at the years sales over all, Real Trends predict that while we have seen our 10th month of increases in a row, we expect this to fall off in the 2nd half of th year.
On the National Level we have pulled information from Real Trends June 2010 issue. Complete digital issue is in the member library. Be sure to log in and read.