Kansas City Real Estate Sales Drop in July - Did the Heat Play A Part?

July home sales dropped 12.7% from the previous month  nationally, according to a RE/MAX International survey of 53 cities released yesterday.

RE/MAX International blames tighter lending standards for he drop in sales. The National Association of REALTORS pointed to similar predicaments when it reported existing home sales dropped 3.5% in July.

In the Kansas City, I have heard the financing issues from my fellow real estate colleagues. I think the 100+ degree heat and the abundance of distressed sales like foreclosures and short sales has had a bigger part. Not many people wanted to look at more than 5 homes at a time during the 100+ heat wave.


 I do not think financing had a huge part in the drop in sales in July in my real estate market, because home buyers can still get low interest zero down loan in certain cities. Financing really did not change in June and July. I do see financing having an effect on the market in the 4th quarter of the year.

Although sales have dropped, they are still 13.1% above levels measured one year ago, and the median price had the smallest yearly decline in six months.

Prices actually increased in four of the last five months, allowing Margaret Kelly, the CEO of RE/MAX to stay optimist.

"The fact that July home sales were higher than a year ago, and by such a significant amount, gives us reason for great optimism," Kelly said. "And now that prices have risen for four of the past five months, the housing market is beginning to show definite signs of recovery."

July marked the first month since September 2010 when the average days on market for homes sold dropped below 90 days. In July, it averaged 88.

The 53 metro areas averaged an inventory of homes that would take 7.2 months to work through, down only two-months worth of supply from one year ago.

To view real estate stats for Kansas City, go to Kansas City Real Estate Stats.

RE/MAX sells more homes than any other real estate company.
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Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty 

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