It has been another recovery year in 2014 but not the same as 2013. With a broad pattern of rising prices and stable to improving inventory, the market has shifted from being drastically undersupplied to approaching equilibrium. Price gains are still positive but less robust than last year. The metrics to watch in 2015 include days on market, percent of list price received and absorption rates, as these can offer deeper and more meaningful insights into the future direction of housing.
Closed Sales decreased 0.4 percent for existing homes but increased 10.1 percent for new homes. Pending Sales decreased 15.6 percent for existing homes and 8.1 percent for new homes. Inventory decreased 14.4 percent for existing homes but increased 18.4 percent for new homes.
The Median Sales Price was up 5.8 percent to $147,500 for existing homes and 7.3 percent to $342,549 for new homes. Days on Market remained flat for existing homes but increased 11.1 percent for new homes. Supply decreased 15.6 percent for existing homes but increased 15.0 percent for new homes.
Interest rates remained lower than anyone expected for the entire year. That trend snowballed with solid and accelerating private job growth to empower more consumers to buy homes. This coupled nicely on the governmental side with mortgage debt forgiveness and interest deduction preservation. Student loan debt, sluggish wage growth and a lack of sufficient mortgage liquidity still remain hurdles to greater recovery.
*Market information courtesy of Kansas Regional Association of Realtors and Heartland MLS.
