Housing Market Stays Hot in July
by Jeff Pinkerton
At the risk of sounding repetitive, Kansas City’s housing market is looking up this month. (When it’s good news, we don’t mind sounding a little like a broken record.)
The market continued its upward trend in July, according to new data released by the Kansas City Regional Association of Realtors. A total of 3,116 homes were sold in the metro in July (2,849 existing homes and 267 new homes). This is up 18 percent from one year ago when home sales totaled 2,641 (2,459 existing and 182 new).
The increase in units sold is accompanied by increased sales prices. The average sales price of a new home in the Kansas City metro was $346,722 in July. This is up from $314,607 one year earlier (a 10.2 percent increase).
Existing home sale prices also increased from $162,256 in July 2012 to $183,893 in July 2013, a 13.3 percent increase.
A strong housing market is important to a region’s economy for several reasons. First of all, the very act of purchasing a home represents a long-term commitment to a city or neighborhood. It is also a reflection of confidence. People buy homes when they are confident in their economic circumstances. And finally, the region gets a definite boost in economic activity through a strong housing market. New home construction leads to more employment, especially in the hard-hit construction industry. Also, when people move, they typically don’t just buy the home. They often make other purchases, like furniture, carpet and appliances, which also boosts the economy.