Kansas City Metropolitan Housing Statistics for June 2010

JUNE HOUSING MARKET STATISTICS

The effects of the homebuyer tax credit are reflected again in the June report, and this will continue for a few more months until the market stabilizes to a more ‘normal' standard. Homebuyers who took advantage of the tax credit and were under contract by April 30 have until September 30 to close on those purchases. Watch for fluctuations in the market until the Fall and then watch for sales and prices to increase ever so slowly, but steadily. As new home inventory continues to fall, prices of new homes will rise more quickly than prices of existing home (classic ‘supply & demand'). Unemployment is one vital ingredient in the formula, and NAR has predicted a slight decrease in 2011, which will help sales and prices of existing homes. Interest rates are still at historic lows, but are expected to rise in 2011, and as that occurs it may also encourage some buyers to ‘get off the fence'. Predictions are for some better news for the housing market in 2011, although, no significant increase in price or sales is expected.

The average new home price this month is slightly lower than the same time a year ago, and the average existing home price is up 4% from one year ago. The average price for combined (new and existing) homes in the region is 5% higher than June 2009.

New home sales increased 23%, existing home sales decreased 5%, and combined total sales were down 3% over last year. This represents a 31% increase in new home sales, 13% decrease in existing home sales and a combined total sales decrease of 10% from last month.

New home inventory was slightly higher than last month and is 37% lower than last year. Resale inventory is 3% higher than a month ago and is 13% higher than it was last year. New and existing inventory combined is 3% higher than last month, which represents a 5% increase in total inventory over last year.

Supply for combined new and existing homes remained almost the same at 7.7 month's supply in June from a 7.5 month's supply in May. The existing home supply was also 7.7 months, slightly up from 7.4 months last month. The new homes supply in June 2010 was 8.0 months, slightly down from May's 8.3 months of supply.

The good news is that supply has continued to decline and is lower than June 2009. Although there is a slight buyer's edge present in the new homes market, the existing home and combined totals are nearing a balanced market!

Generally speaking, a 5-6 month supply of homes on the market is a balanced market. When supply exceeds 6 months, the market begins to favor buyers and when the supply is less than 5 months, the market tends to favor sellers.   

Source: Kansas City Regional Association of REALTORS and Heartland Multiple Listing Service  

Copyright 2010. KCRAR is the "Voice for Real Estate in the Kansas City Area"  

MARKET COMMENTARY FOR JUNE 2010

MARKET STATISTICS FOR JUNE 2010

Should you want market statistics for your neighborhood, contact Ron Mowery, Real Estate Professional at (913) 269-0479 or email him at Ron@JoCoHomesOnline.

If you are looking for homes for sale in or around Johnson County, click on this link to start your home search today!

Should you want a complimentary market analysis for your home, contact Ron Mowery, Real Estate Professional at (913) 269-0479 or email him at Ron@JoCoHomesOnline.