Market Snapshot | July 2023

Monthly Recap

– Kansas City Association of Realtors

Affordability constraints have continued to limit homebuying activity this summer, with existing-home sales falling 3.3% month-over-month nationwide as of last measure, according to the National Association of REALTORS® (NAR). Mortgage rates have approached 7% in recent months, leading many prospective buyers to put their home purchase plans temporarily on hold. But higher rates have also kept many existing homeowners from listing their homes for fear of giving up the low-rate mortgages they locked in a few years ago, when rates were significantly lower.

Closed Sales decreased 20.6 percent for existing homes and 3.3 percent for new homes. Pending Sales decreased 12.8 percent for existing homes but increased 62.3 percent for new homes. Inventory decreased 25.1 percent for existing homes but increased 1.4 percent for new homes.

The Median Sales Price was up 1.7 percent to $289,900 for existing homes and 2.7 percent to $540,475 for new homes. Days on Market increased 42.9 percent for existing homes and 142.9 percent for new homes. Supply decreased 7.1 percent for existing homes but increased 14.0 percent for new homes.

Despite a drop in existing-home sales, home prices have remained near record highs, with a national median sales price of $410,200 as of last measure, 0.9% below the all-time high of $413,800 recorded in June 2022, according to NAR. With only 3.1 months’ supply heading into July, the lack of inventory has boosted competition among buyers and put upward pressure on sales prices, especially in more affordable markets, where competition for homes remains particularly strong.