CLICK HERE to view the October 2019 Kansas City Area Market Reports
In October, mortgage rates increased slightly from the three-year lows seen in
September. While the Federal Reserve reduced the federal-funds target rate
by .25%, this decline was widely expected and largely factored into mortgage
rates already, which are still approximately 1% lower than this time last year.
Fannie Mae is predicting that continued low rates, and possibly lower rates,
are expected in 2020.
Closed Sales increased 1.7 percent for existing homes but decreased 10.7
percent for new homes. Pending Sales increased 10.6 percent for existing
homes and 30.7 percent for new homes. Inventory decreased 13.0 percent for
existing homes and 9.8 percent for new homes.
The Median Sales Price was up 3.2 percent to $196,000 for existing homes
but decreased 2.0 percent to $363,665 for new homes. Days on Market
decreased 11.9 percent for existing homes but increased 25.6 percent for new
homes. Supply decreased 8.3 percent for existing homes but remained flat for
As we begin the slower time of year for home sales, historically low mortgage
rates will continue to support buyer demand and may create additional lift to
home prices as excellent affordability gives buyers the ability to offer more to
secure their dream home. Throughout much of the country, the continued low
level of housing inventory also continues to constrain sales activity from
where it would likely be in a balanced market.