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.