New Homes Sales

New home sales this month of 339 represents a 45% decrease from one year ago when there were 611 new home sales in June. New home sales decreased 3% over the past month when there were 351 new home sales.  Keep in mind, new home sales traditionally run less than 20% of total sales and with the shifting in the market, we are running 12.5% of overall sales. 

Existing Home Sales

Existing homes sales were down 3% from last month's sales of 2,448 compared to this month's sales of 2,372. Existing home sales this month were down 17% from one year ago when there were 2,859 sales. Resale inventory did not change this month with 16,138 compared to 16,072 a month ago. The existing resale inventory this month is 1% lower than it was a year ago when the resale inventory was 16,249.

Inventories

New Home inventory decreased this month with 3,910 homes in inventory compared to 4,124 new homes on the market last month. The good news is the new home inventory for the region is 22% lower than it was a year ago at this time when there were 4,983 new homes on the market. 

Supply in the Region has been steadily decreasing every month since January. Supply for combined new and existing homes increased slightly from a 7.2 months supply last month to 7.4 months supply this month. The existing home supply also increased from 6.6 months in May to 6.8 months in June; and the new homes supply decreased over the past month from 11.7 months of supply in May to 11.5 months supply in June. Even though the supply had little change over the last month, we are still experiencing a slight buyer's edge in both the new home market and in the existing home market.

Supply is determined by taking the "Inventory" and dividing it by the "Number of Sales." Generally speaking, a 5-6 month supply of homes on the market equates to a "balanced" market. When the 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 2008. KCRAR is the "Voice for Real Estate in the Kansas City Area"

MARKET COMMENTARY FOR JUNE 2008

MARKET STATISTICS FOR JUNE 2008