In the first quarter of 2022, we continued to see action at an unprecedented velocity in the area covered by the Heartland MLS – this includes 34 counties across the KC Metro.
According to the Kansas City Regional Association of Realtors, despite higher sales prices and higher interest rates, we saw a high demand for homes persist across the United States – with numbers nearly doubling nationally. This increase rounded out an astounding 120 consecutive months of escalating prices year-over-year. Conversely, increasing prices and lower inventory have caused pending and existing home sales to fall in recent months.
Q1 saw pending home sales decrease a little over 4% compared to the first quarter of 2021 – from 10,161 to 9,745. However, this number was still up over the first quarter of 2020. There was also a slight decrease in closed sales for January, February and March of this year – moving from 8,292 to 8,116 sales closed.
Overall, total home sales trended downward from this time last year – a result of increased home prices and diminished inventory. We saw inventory levels decrease across our entire market, down almost 22% from 2021.
Not unexpectedly, average home sales prices were up 11.6 percent year-over-year – from around $284,000 to $317,000 for our area. This increase in price is expected to continue as supply remains lower than the first quarter of 2021. This will cause the percentage of list prices to also increase. Ultimately, economists believe interest rate increases will ease demand as well as moderate home prices. Currently, sale price received is sitting at 100.9% – up from 99.2% in March of 2021.
As always, at Bash & Co. Sotheby’s International Realty, we are ready to assist you with any questions you may have. I would love to talk with you about the market, and how I can help you achieve your goals as a homeowner!
Bash & Co. Sotheby’s International Realty is an innovative full-service residential real estate brokerage that leverages the latest technology to serve clients in emerging, established, and luxury neighborhoods across the Kansas City area. Follow them on Instagram here and on Facebook here.