Development

November 19, 2013

KC housing sales and prices rose in October

The October report from the Kansas City Regional Association of Realtors also gives the first indication that a shrinking supply is beginning to affect the market. The group reported 2,128 existing homes sold last month, up 2 percent from October 2012, and 235 new homes sold, up 26 percent.

The latest report on the metropolitan Kansas City housing market shows sales and prices were up in October and gives the first indication that a shrinking supply is beginning to affect the market.

The Kansas City Regional Association of Realtors reported 2,128 existing homes sold last month, up 2 percent from October 2012, and 235 new homes sold, up 26 percent.

The average price of an existing home was $166,679, up 7 percent, and $359,165 for a new home, up 9 percent.

The inventory of existing homes listed for sale last month was 10,913, 5 percent below October 2012. There were 1,206 new homes listed, up 10 percent from a year ago, the association reported.

The new home supply has been increasing as builders ramp up after several years of weak post-recession activity. Last week the Home Builders Association of Greater Kansas City reported that the local industry was on track for 4,000 single-family permits this year, the most since 2007.

The Realtors reported a 4.9-month supply of existing homes, making it firmly a seller’s market. The new home supply was 5.7 months, a balanced market favoring neither buyers nor sellers. Until this summer, the Kansas City area had been a strong buyer’s market in both categories.

Looking ahead, pending home contracts declined 9 percent last month for existing and new homes compared with a year ago, a reflection of the smaller inventory available. That could begin to push up prices more, according to the Realtors group.

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