Market Snapshot | September 2023

Monthly Recap

– Kansas City Association of Realtors

National sales of existing homes recently fell to a 7-month low, as surging borrowing costs, rising sales prices, and limited inventory continue to keep many would-be buyers out of the market. Borrowers have become increasingly sensitive to fluctuations in mortgage rates, which have remained above 7% since mid-August. With fewer buyers able to afford the costs of homeownership, existing-home sales declined 0.7% month-over-month and were down 15.3% year-over-year, according to the National Association of REALTORS®(NAR).

Closed Sales decreased 21.8 percent for existing homes and 5.9 percent for new homes. Pending Sales decreased 7.8 percent for existing homes but increased 30.3 percent for new homes. Inventory decreased 13.6 percent for existing homes and 9.2 percent for new homes.

The Median Sales Price was up 0.5 percent to $276,500 for existing homes but decreased 5.8 percent to $539,950 for new homes. Days on Market increased 9.5 percent for existing homes and 172.2 percent for new homes. Supply increased 6.7 percent for existing homes but remained flat for new homes.

Prices have continued to increase this fall despite softening home sales nationwide, as a lack of inventory has kept the market competitive for prospective buyers, sparking bidding wars and causing homes to sell for above asking price in some areas. Heading into September there were only 1.1 million units available for sale, 0.9% fewer than a month ago and 14.1% fewer than the same period last year, according to NAR. As a result, the U.S. median existing-home sales price rose 3.9% year-over-year to $407,100, marking the third consecutive month that the median sales price topped $400,000.