Market Snapshot | March 2023

Monthly Recap

– Kansas City Association of Realtors

Nationally, existing home sales jumped 14.5% month-over-month as of last measure, the first monthly gain in 12 months, and representing the largest monthly increase since July 2020, according to the National Association of REALTORS® (NAR). The sudden uptick in sales activity stems from contracts signed toward the beginning of the year, when mortgage rates dipped to the low 6% range, causing a surge in homebuyer activity. Pending sales have continued to improve heading into spring, increasing for the third consecutive month, according to NAR.

Closed Sales decreased 18.7 percent for existing homes and 10.3 percent for new homes. Pending Sales decreased 12.8 percent for existing homes and 11.5 percent for new homes. Inventory decreased 8.0 percent for existing homes but increased 76.0 percent for new homes.

The Median Sales Price was down 2.5 percent to $253,450 for existing homes but increased 11.9 percent to $536,935 for new homes. Days on Market increased 57.1 percent for existing homes and 57.3 percent for new homes. Supply increased 12.5 percent for existing homes and 103.2 percent for new homes.

Monthly sales might have been even higher if not for limited inventory nationwide. At the current sales pace, there were just 2.6 months’ supply of existing homes at the beginning of March, far below the 4 – 6 months’ supply of a balanced market. Inventory remains suppressed in part because of mortgage interest rates, which nearly hit 7% before falling again in recent weeks. Higher rates have continued to put downward pressure on sales prices, and for the first time in more than a decade, national home prices were lower year-over-year, according to NAR, breaking a 131-month streak of annual price increases.