Wichita Real Estate Market Report: 01-07 July 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 –

• 2.38 months inventory = strong seller’s market.
• 16 more homes available on the market.

Median Days on Market (Pending) –

• Median days on market was 12 days.
• Top 1/3 of homes under contract in 6 days or less.
• Market continues to move fast, with desirable homes not being able to “wait for the weekend.”

New Home Sales –

• New home sales were 5.22% 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 the 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 –

• $177,480 dropped by about $6.7k since the previous week.
• On average homes sold for 96.99% of asking price.

Net Sold to Asking Ratio –

• 98.76% for homes sold below the median days on market.
• 95.14% for homes sold above the median days on market.
• 3.61% difference between homes sold below and above the median days on market.
• Potential loss due to improper pricing = $6,412.62. With the the price point switch between below and above median days on market switched for this past week; we can tell definitively the loss in value is due to improper pricing.
• New home buyers can expect to pay 0.66% over asking price.

Appreciation –

• 2.19% appreciation this month compared to last year.

Change in Interest Rate –

• Current interest rate = 4.55%.
• Last year’s interest rate at this time = 3.90%.
• Estimated monthly payment for homes sold in Wichita last week (assuming 20% downpayment).
  • Average net sold price $177,480
  • Principal and interest payment at current interest rate = $723.64 / month
  • Principal and interest payment at last year’s interest rate = $669.69 / month
  • Difference = $53.95 / month higher
  • Total Difference over the life of the loan = $19,422

***Note: This report was compiled using data provided by the Realtors of South Central Kansas Multiple Listing Service. The data was aggregated from homes listed using the MLS within 30 miles of Wichita (see map below). There are many sub-markets within Wichita and the surrounding area which are often different than the averages/medians discussed here. This report is an analysis of the overall Wichita real estate market.***