Report: Kansas City-area home prices will start a steady rise in the fall
Prices of Kansas City-area homes are expected to fluctuate until fall, then begin a slow, steady rise.
That prediction led off the Kansas City Regional Association of Realtors’ monthly statistical report about the metro-area housing market. According to the report, prices of new homes will rise more quickly than those of existing homes because of declining new home inventory.
“Unemployment is (another) vital ingredient in the formula,” KCRAR said in a release, “and (the National Association of Realtors) 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 encourage some buyers to ‘get off the fence.’”
In June, KCRAR reported, 2,599 new and existing homes in the Kansas City area sold. That was down 10 percent from the previous month’s total (2,878) and down 3 percent from June 2009 (2,671).
June saw 308 new home sales, a 23 percent increase from a year earlier (251) and a 31 percent increase from May (236).
The association reported 2,291 existing home sales in June. That was down 5 percent from a year earlier (2,420) and down 13 percent from the May total (2,642).
The average new home price in June was $296,768, which was 2 percent lower than a year earlier ($302,628). The average existing home price was $167,487, up 4 percent from June 2009 ($160,487).
The number of new homes on the market continued its steady decline in June. The total new home inventory of 1,624 last month was down only slightly from 1,638 in May but represented a 37 percent drop from June 2009 (2,587).
Resale inventory in June included 15,839 homes, which was 3 percent higher than in May (15,367) and 13 percent higher than a year earlier (14,049).
The area’s supply of new and existing homes — calculated by dividing inventory by the 12-month average number of sales — rose to a 7.7-month supply in June from a 7.5-month supply in May.
When supply exceeds six months, the market is considered to favor buyers. When it’s less than five months, the market favors sellers.
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