Wichita Real Estate Market Report: 10-16 June 2018
Buying or selling a home is one of the most important financial decisions of a person’s life. My goal is to provide home buyers and sellers with the information necessary to make informed decisions. To do this they must understand the current supply (inventory) and demand (pricing) of houses for sale in Wichita.
I hope the residents of Wichita, Kansas and the surrounding area find the information valuable. I welcome any questions or comments.
You can compare the Wichita real estate market to the overall US real estate market by accessing Redfin’s Real Estate Market Report.
***For a helpful list of definitions for some of the terms used in this report go here.***
Housing Inventory in Wichita
Housing inventory metrics:
- Describe current availability (supply) and recent buyer activity.
- Identify trends and predict future market conditions.
- Provides information for homebuyers and sellers in the Wichita real estate market to make informed decisions.
Analysis of Housing Inventory in Wichita
- 2.35 months inventory = strong seller’s market.
- 34 fewer homes available on the market.
Median Days on Market (Pending) –
- Median days on market was 13 days.
- Top 1/3 of homes under contract in 4 days or less.
- Highly desirable homes, not available to “wait until the weekend.”
New Home Sales –
- New home sales were 8.33% of home sales.
- The national average is 10% (source: National Association of Home Builders).
- Housing shortage unlikely to correct in the near future.
Housing Pricing in Wichita
Housing Pricing Metrics:
- Describe the current demand (pricing) for housing in the Wichita real estate market.
- The best measure of demand is the net sold price / square foot.
- Comparing the ratios of different metrics provides a good indicator of effects they have on each other.
- Understanding current pricing trends help homebuyers and sellers make informed decisions.
Analysis of Housing Pricing in Wichita
Average Net Sold Price –
- $19196, increased by about $12.9k since the previous week.
- Homes sold below the median days on market where at a price point over $18.5k less than those sold above median days on market.
Net Sold to Asking Ratio –
- 99.67% for homes sold below the median days on market.
- 97.09% for homes sold above the median days on market.
- 2.59% difference.
- Potential loss due to improper pricing = $4,942.64.
- New home buyers can expect to pay 2.94% over asking price.
Appreciation –
- 2.48% appreciation this month compared to last year.
- Less appreciation this week compared to the previous year. Increasing interest rates in the previous month and in the future will likely further dampen the appreciation rate into the future.
Change in Interest Rate –
- Current interest rate = 4.54%.
- Last year’s interest rate at this time = 3.94%.
- Estimated monthly payment for assuming 20% downpayment.
- Average net sold price $191,196
- At current interest rate = $778.65 / month
- At last year’s interest rate = $724.96 / month
- Difference = $53.69 / month higher
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