Even while the pace of home price acceleration normalizes, housing has shown recent signs of ongoing strength. Both housing starts and future building permits are on the rise nationally. Inventory levels are increasing in most metro areas, driven higher by rising prices and more confident sellers. Homes are still selling quickly and for close to or even above list price.
Closed Sales increased 5.2 percent for existing homes and 5.4 percent for new homes. Pending Sales decreased 28.2 percent for existing homes and 10.1 percent for new homes. Inventory decreased 9.2 percent for existing homes but increased 22.9 percent for new homes.
The Median Sales Price was up 3.6 percent to $145,000 for existing homes and 5.4 percent to $329,429 for new homes. Days on Market increased 3.9 percent for existing homes and 29.8 percent for new homes. Supply decreased 7.5 percent for existing homes but increased 19.3 percent for new homes.
Interest rates remain attractive, even as Federal Reserve banter is finally hinting that quantitative easing is reaching its fateful conclusion. Capital markets have exhibited some volatility, but ultimately it’s all about earnings and growth, and corporate earnings have been encouragingly strong, while private job gains have recently exceeded expectations.
*Market information courtesy of Kansas Regional Association of Realtors and Heartland MLS.
