Affordability challenges continue to impact Market activity with many buyers and sellers at a standstill due to fluctuations in mortgage interest rates which are up considerably from this time last year.
Some prospective buyers have been sidelined by elevated sales prices and higher borrowing costs causing existing home sales to fall while many would-be sellers with low rate mortgages have delayed their decision to sell in hopes market conditions will improve further reducing the number of homes on the market.
The number of homes for sale was down compared to this time last year. Inventory levels marketwide decreased 12.8 percent to 4,978 units. The Month's supply of inventory was up slightly to 1.6 months. Pending sales decreased 13.6 percent from the second quarter of 2022 to 10,651 for the quarter. Closed sales decreased 16.8 percent from the second quarter of 2022 to 10,204 for the quarter.
The trend of decreasing sales continues as interest rates remain high and home prices have not come down enough to keep them affordable. Prices were up compared to last year at this time the average sales price increased 5.1 percent to 363,576 dollars. The lack of inventory continues to push home prices up despite the increasing interest rates. Percent of original list price received was down slightly from Q2 2022 however most homes are still selling at or slightly above that original list price due to the continued imbalance in supply and demand that boosts competition. Among home buyers especially in more affordable markets the shortage of existing homes for sale has also led an increasing number of buyers to the new Home Market which has seen construction and new home sales surge in recent months exceeding expectations and causing Builder confidence to rise to levels not seen in nearly a year.
Buying a home with an experienced Realtor is more important than ever with the low inventory and multiple offer situations. If you own your home and want to see how your property would perform in this current market, contact Brad Korn (816) 224-KORN (5676) or find us just about anywhere on the internet by searching "KornTeam Real Estate".
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