Sales of new and existing homes still sluggish in KC market

The Kansas City housing market continued to lag in May, with 2,185 new and existing homes sold, down 24 percent from May 2010.

There were 148 new homes sold last month, down 37 percent from a year ago, and 2,037 existing homes, down 23 percent, according to the Kansas City Regional Association of Realtors.

Home sales last year during this period, however, were being spurred by a now-expired federal tax credit program.

The average sales price of a new home in May was $324,853, up 14 percent from a year ago. The average existing home sold for $150,319, 4 percent below last year.

There were 1,368 new homes in the Kansas City housing inventory last month, 16 percent less than a year ago, and 16,019 existing homes listed, up 4 percent from May 2010. The Realtors report does not include homes for sale by owners.

Based on a formula that divides the inventory by sales, the association estimated there were a 9.8-month supply of existing homes and a 9.7-month supply of new homes in May, indicating a buyer’s edge in the market for both categories.