It’s a seller’s market for homes as area prices rise and supply dwindles

Prices for new and existing homes in the Kansas City area continued to rise in November, and the supply of existing homes continued to dwindle, making it a seller’s market.

The average sales price of an existing home rose 7 percent to $170,093 last month compared with last year, and the price of a new home increased 7 percent to $354,734, according to the latest report from the Kansas City Regional Association of Realtors.

The November statistics revealed continuing pressure on prices as the supply of existing homes dwindled to 10,000, down 5 percent from November 2012. The new home inventory was up 6 percent to 1,266 compared with last year.

There were 1,793 existing homes sold last month, down 4 percent compared with November 2012, and there were 1,249 pending contracts, off 13 percent from last year. The Realtors reported a 4.5-month supply of existing homes listed, making it a clear seller’s market.

As for new homes, there were 205 sold last month, 20 percent more than a year ago. There were 168 pending contracts, 16 percent lower than November 2012. The Realtors reported there was a 5.9-month supply of new homes, making it a balanced market.

In a separate report released this week, the Home Builders Association of Greater Kansas City said 3,803 single-family permits were issued through November, making this year the strongest since 2007. The builders expect 4,000 permits to be issued by the end of the year.