top of page

June Residential Market Update Highlights for the Kansas City Region

Kyle Niemann

June is always an exciting month in real estate! Historically, this is when the median sales price is at its highest for the year. Looking at the past two years, you can see that the median sales price peaks in June and then gradually decreases until December or January. However, these prices still remain higher than the same months in previous years. Recently, headlines have highlighted the "highest median price ever." In a healthy real estate market with 3-5% appreciation, this should be the headline every June, and possibly even in April and May.


In June, appreciation was strong again with a 6.8% year-over-year growth, continuing our trend of 6% or higher growth each month for the last nine months, except for May, which still saw a solid 4.5% appreciation. Looking ahead, I expect to see similar appreciation, as these months last year showed virtually no growth over 2022, except for August. Our streak of nearly 4% or more appreciation each month began in October 2023.


The growth in listings taken has slowly declined since February when we saw an impressive 30% increase over 2023. The June numbers are almost identical to June 2023, with only six more listings taken in 2024. Contracts written were even closer, with 2023 edging out 2024 by just two contracts.


Closings were down 12.65% compared to June 2023. Reviewing the daily numbers for contracts written in April and May, when the average time from contract to closing is around 42 days, there were no significant anomalies. It seems some people closed earlier in May to take advantage of the Memorial Day weekend. The timing of the 4th of July holiday on Thursday may also have contributed to fewer closings in June, as many people had time off around the holiday and pushed their closing to the first few days of July. Tthe last two days of June were a weekend in 2024, unlike in 2023 when over 700 closings occurred on the last two days of June heading into a long weekend.


After reaching a low of 13 days on the market in 2022, each of the last two years has seen an increase of six days per year, with June 2024 seeing existing homes on the market for 19 days before going under contract and closing. This increase in days on the market has led to a steady rise in active inventory, with over 4,400 active resale homes for sale in the Heartland MLS at the time of writing.


The next few months could bring changes to the real estate market with the NAR settlement taking effect on August 14th. It is expected that the Federal Reserve will hold interest rates steady at their next meeting, but experts predict a rate cut in September. Today's release of the June personal consumption expenditures price index has fueled that speculation. Additionally, we are just over 100 days away from the election, which may cause some home buyers and sellers to hold off on their decisions until after the results.








1 view0 comments

Comments


bottom of page