As the weather warms and pandemic restrictions ease across much of the country, the U.S. housing market shows little sign of cooling. Robust buyer demand, fueled by low mortgage rates, continues to outpace supply, which remains near historic lows. Nationwide, inventory remains much lower than it was at this time last year, and sales prices are surging as a result.
Homes on the market in the Kansas City metro area are selling for an average of 103.3 percent of the original list price. That’s a 22.2 percent increase from May 2020! Days on the market decreased to only 21 days—compared to 26 days the previous month, and 46 days in May 2020. Supply from the same time last year decreased 56.3 percent for existing homes and 63 percent for new homes, for an average of 57.9 percent. With that said, there are many more homes available than there were in March. The total number of homes on the market increased from 2,515 in March to 3,011 homes in May. This is still only a 0.8-month supply of homes on the market.
With such limited supply of existing homes to purchase, all eyes are on home builders to provide a much-needed boost of inventory to the market to help meet buyer demand. However, increasing material and labor costs, along with supply chain challenges, have contributed to significantly higher construction costs, with builders passing these costs on to homebuyers. And while the warmer temperatures, rising sales prices, and the reopening of the economy may draw more sellers to the market, historically low levels of homes for sale are likely to continue for some time.
Sellers: If we can answer any questions about the market in your neighborhood please reach out. It’s a great time to list your home with us.
Buyers: We are succeeding in helping our clients get into their dream homes in this strong seller’s market. We can assist you too!
Email Miles Rost or call us: 913-451-4888
All stats and information courtesy of KCRAR – the Kansas City Regional Association of Realtors®.
