Wichita Real Estate Market Report: 17-23 June 2018

Purpose of the Wichita Real Estate Market Report

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

Type of Market –

• 2.34 months inventory = strong seller’s market.
• 20 fewer homes available on the market.

Median Days on Market (Pending) –

• Median days on market was 15 days.
• Top 1/3 of homes under contract in 7 days or less.
• The speed of the market loosened up slightly for homes that closed in the past week but the highly desirable homes are still often not available to “wait until the weekend.”

New Home Sales –

• New home sales were 4.38% of home sales.
• The national average is 10% (source: National Association of Home Builders).
• New home sales regularly have fluctuated between 4%-8% each week, this trend shows the housing shortage in Wichita will likely not correct anytime soon.

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 –

• $181,083 decreased by about $10.1k since the previous week.
• Homes sold below the median days on market where at a price point over $16.3k less than those sold above median days on market.

Net Sold to Asking Ratio –

• 100.10% for homes sold below the median days on market. This is the first time that preexisting homes have sold for OVER the asking price since this report began.
• 96.06% for homes sold above the median days on market.
• 4.04% difference between homes sold below and above the median days on market.
• Potential loss due to improper pricing = $7,315.27..
• New home buyers can expect to pay 4.41% over asking price.

Appreciation –

• 3.22% appreciation this month compared to last year.

Change in Interest Rate –

• Current interest rate = 4.62%.
• Last year’s interest rate at this time = 3.89%.
• Estimated monthly payment for homes sold in Wichita last week (assuming 20% downpayment).
  • Average net sold price $181,083
  • Principal and interest payment at current interest rate = $744.38 / month
  • Principal and interest payment at last year’s interest rate = $682.46 / month
  • Difference = $61.92 / month higher
  • Total Difference over the life of the loan = $22,291.20

Reposted from my website.