Wichita Real Estate Market Report – 22 through 29 April 2018  

Purpose of the Wichita Area Real Estate Market Report - The purpose of this report is to provide home buyers and sellers the information necessary to make informed decisions when making the large financial decision that is buying or selling a home. I hope the residents of Wichita, Kansas and the surrounding area will find the information valuable and I welcome any questions or comments. 


Housing Inventory Movement: The housing inventory movement metrics describe the current availability of and recent buyer activity. These metrics can also help to predict future market conditions. It is important for both homebuyers and sellers to understand the supply and demand for their market in order to make informed decisions. 



Analysis of Housing Inventory Movement: Not much change in the availability of home inventory, the Wichita area is still in a strong Seller’s market with 2.26 months work of inventory. There was a significant drop in both the new house inventory listings this past week, but that should be offset by the significant drop in pending listings as well. The median days on market has dropped again, however, suggesting more buyers are beginning to enter the market again; I expect buyers to start entering the market in larger numbers as the school years come to a close.


New home sales dropped again to 5.69%. This is well below the national average of 10% (as reported by the National Association of Home Builders https://www.nahb.org/en/research/housing-economics/construction-statistics/national/new-and-existing-home-sales-reports.aspx). Because Sedgwick and Butler counties are two of the highest growth counties in Kansas, these numbers are not encouraging for our current housing shortage. Though with interest rates still at historic lows and expected to rise in the future, despite low inventory now is a good time to purchase.


Housing Inventory Pricing: The housing inventory pricing metrics describe the current trends for listing vs selling price, as well as the changes in current values when compared to the previous year. Net sold price is the price a house sells for after accounting for seller credits, this is used instead of sold price because this is a better indicator of market value. These metrics are important for home buyers and sellers to understand so they understand how home pricing affects offers and sale prices. 

Housing Inventory Pricing Analysis: In the Wichita area last week, the houses sold on average were much lower in value than the previous week. This is due to a combination of factors but mostly because existing home sales were at a lower price point, there was less new home sales and those home sales that did take place were at a lower price point. 


Net sold to asking price ratio continues to rise both for houses sold below the median days on market and those sold above the median days on market. There is still a significant difference between the two ratios, however, with homes selling over the median days on market losing an average of $5,231.79 last week. 


For the first time this year, new houses had a net sold price below their asking price. Though the difference is quite small since the builder still nets 99.3% of the asking price. The drop may be due to the builders this week being at a lower price point than the previous weeks. 


One change was made in the calculation of appreciation for this past week. In previous weeks we had used the sold price/square foot as a measure of relevant price; this is a little less accurate than using the net sold price/square foot. We found a new technique to provide this more accurate data. We have updated last week’s report numbers to reflect this calculation technique. 


It seems that as we begin moving into the summer selling season, the difference in prices between this year and last year reduces in the previous week our appreciation was 2.28% since the previous year. Homes purchased in the winter months seem to have experienced a much greater appreciation than those purchased during the summer months. It will be interesting to see if this trend continues as the Real Estate market comes into full swing this summer. 


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*Note: The above metrics were 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). The data was collected by the author (local Wichita Real Estate Agent - Jared Viernes) on the date the blog post was published. There are many submarkets within Wichita and the surrounding area which may be very different from the averages/medians discussed here. This is meant as an analysis of the overall Wichita area real estate market, not a specific neighborhood.  


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Wichita Real Estate Market Report – 15 through 21 April 2018  


Purpose of the Wichita Area Real Estate Market Report - The purpose of this report is to provide home buyers and sellers the information necessary to make informed decisions when making the large financial decision that is buying or selling a home. I hope the residents of Wichita, Kansas and the surrounding area will find the information valuable and I welcome any questions or comments. 


Housing Inventory Movement: The housing inventory movement metrics describe the current availability of and recent buyer activity. These metrics can also help to predict future market conditions. It is important for both homebuyers and sellers to understand the supply and demand for their market in order to make informed decisions. 
 

Analysis of Housing Inventory Movement: Wichita is clearly in a Seller’s market with there being only 2.23 months’ worth of inventory on the market. There has been a slight drop in available inventory on the market of 24 houses, even with the incoming listings (248) and pending listings (245) leveling off. It also appears that the market movement has started to balance out with the median days on market for properties once again increasing to 21 days, and the top third going under contract in eight days. Hopefully, this keeps up allowing buyers a little more breathing room when it comes to making a decision on an offer. 


New home sales at 7.87% still well below the average, this is above the national average of 10% (as reported by the National Association of Home Builders). 


Housing Inventory Pricing: The housing inventory pricing metrics describe the current trends for listing vs selling price, as well as the changes in current values when compared to the previous year. Net sold price is the price a home sells for after accounting for seller credits, this is used instead of sold price because this is a better indicator of market value. These metrics are important for home buyers and sellers to understand so they understand how home pricing affects offers and sale prices.


Housing Inventory Pricing Analysis: The average home is selling just below 97% of asking price, with an increase in net sold to asking ratio for both homes below and above the median days on market. As we enter the buying season it seems increased competition has resulted in greater profits for home sales throughout the marketplace. New homes sales are particularly high since they sell, on average, for more than the price they are listed at. There is still, however, loss in value when comparing average below and above median days on market net sold to asking ratio; this value when calculated using average net sold price is $6,332!!! This highlights the importance of proper pricing when you first put the home on the market. 


Appreciation for this past week, when compared to the last week, has dropped significantly, dropping from 10% to 5.48%. This is not due to a dropping of current values but rather to a sharp increase in values that occurred this time last year where there was likely more buyers and around equivalent inventory levels. 


If you or someone you know are interested in getting this weekly report contact me here to get added to the mailing list. 


*Note: The above metrics were 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). The data was collected by the author (local Wichita Real Estate Agent - Jared Viernes) on the date the blog post was published. There are many submarkets within Wichita and the surrounding area which may be very different from the averages/medians discussed here. This is meant as an analysis of the overall Wichita area real estate market, not a specific neighborhood.  


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Wichita Real Estate Market Report – 08 through 14 April 2018  

Purpose of the Wichita Area Real Estate Market Report - The purpose of this report is to provide home buyers and sellers the information necessary to make informed decisions when making the large financial decision that is buying or selling a home. I hope the residents of Wichita, Kansas and the surrounding area will find the information valuable and I welcome any questions or comments. 

Housing Inventory Movement: The housing inventory movement metrics describe the current availability of and recent buyer activity. These metrics can also help to predict future market conditions. It is important for both homebuyers and sellers to understand the supply and demand for their market in order to make informed decisions. 

Analysis of Housing Inventory Movement: A little positive news for homebuyers entering the market Wichita Real Estate market, the median days on market actually increased this past week to 14 days from two weeks ago with a low of 11 days. There continues to be both buyers and sellers entering the market every day as the main selling season comes into full swing; hopefully, for home buyers, the trend remains consistent with no more dropping in median days on market. 

The Wichita Real Estate market is still strongly a sellers’ market with only 2.25 months inventory available. The top 1/3 of homes are still selling extremely fast; this previous week within 5 days. It is very important for buyers to understand if they are interested in a desirable home they cannot wait to see a home on the weekend because it could be under contract by the time the weekend arrives. As expected, new home sales for the previous week were an outlier at 11.58%; this week they again dropped well below the national average of 10% (as reported by the National Association of Home Builders) down to 5.47%. There will need to be significant construction in new housing to provide any relief in the housing shortages in the Wichita area; especially as more and more millennials become homebuyers, with them being 36% of buyers last year (as reported by the National Association of Realtors). 

Housing Inventory Pricing: The housing inventory pricing metrics describe the current trends for listing vs selling price, as well as the changes in current values when compared to the previous year. Net sold price is the price a home sells for after accounting for seller credits, this is used instead of sold price because this is a better indicator of market value. These metrics are important for home buyers and sellers to understand so they understand how home pricing affects offers and sale prices. 

Housing Inventory Pricing Analysis: Interestingly, this past week the average net sold to list ratio dropped slightly to under 96%, but it seems that is entirely due to home sold over the median days on market (19 days). The average home sold over 19 days sold for 4.09% less on a percentage basis than a home sold in less than 19 days. 4.09% of the average sales price results in a net loss of about $6,850; which is about $900 difference since the week before. Competition for the top half of homes remains fairly constant, those homes listed above their market value are taking significant price cuts.

 Appreciation remains constant at this time with home prices rising just over 10% for sales in the area since this time last year.

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*Note: The above metrics were 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). The data was collected by the author (local Wichita Real Estate Agent - Jared Viernes) on the date the blog post was published. There are many submarkets within Wichita and the surrounding area which may be very different from the averages/medians discussed here. This is meant as an analysis of the overall Wichita area real estate market, not a specific neighborhood.  


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Wichita Real Estate Market Report – 01 through 07 April 2018  

Purpose of the Wichita Area Real Estate Market Report - The purpose of this report is to provide home buyers and sellers the information necessary to make informed decisions when making the large financial decision that is buying or selling a home. I hope the residents of Wichita, Kansas and the surrounding area will find the information valuable and I welcome any questions or comments.

Housing Inventory Movement: The housing inventory movement metrics describe the current availability of and recent buyer activity. These metrics can also help to predict future market conditions. It is important for both homebuyers and sellers to understand the supply and demand for their market in order to make informed decisions. 

 Analysis of Housing Inventory Movement: Wichita is clearly in a Seller’s market with there being only 2.21 months’ worth of inventory on the market. It is clear that buyers are still increasing with the lowering of the median days on market for properties under contract last week from 15 to 11 days. The competition for the top 1/3 of homes is particularly fierce with those homes going under contract in four days or less. 

On a positive note, more homes came on the market than were put under contract this past week (210 – 188 = 22), with 22 more homes on the market this week. This trend is encouraging as it shows sellers are starting to come back on the market in earnest for the spring/summer selling season. However, while I cannot measure the number of buyers who entered the market this week due to the trend of median days on market significantly downward we can expect that it was much greater than 22. I expect the median days on market to continue to drop in the coming weeks until the buying season comes into full swing this summer. 

 New home sales took a significant bump this past week with 11.58% of homes sold being new or under construction, this is above the national average of 10% (as reported by the National Association of Home Builders). However, unless this metric remains constant it is unlikely to make any significant effect on the tight inventory in the Wichita area. 

Housing Inventory Pricing: The housing inventory pricing metrics describe the current trends for listing vs selling price, as well as the changes in current values when compared to the previous year. Net sold price is the price a home sells for after accounting for seller credits, this is used instead of sold price because this is a better indicator of market value. These metrics are important for home buyers and sellers to understand so they understand how home pricing affects offers and sale prices. 

 Housing Inventory Pricing Analysis: The average home is continuing to sell for just over 96% of asking price. Of particular note is 3.18% difference between the homes that sold below and above the median days on market. The potential loss in value when this percentage is compared to the average net sold price is $5,950!!! This highlights the importance of proper pricing when you first put the home on the market. With the median days on market for homes now being 11 days, that does not give home sellers much time to react if they have overpriced their homes, but failure to do so could cost them thousands of dollars. 

Appreciation remains constant at this time with home prices rising just over 10% for sales in the area, making it highly likely that owners have increased their equity through home value appreciation alone. 

*Note: The above metrics were 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). The data was collected by the author (local Wichita Real Estate Agent - Jared Viernes) on the date the blog post was published. There are many submarkets within Wichita and the surrounding area which may be very different from the averages/medians discussed here. This is meant as an analysis of the overall Wichita area real estate market, not a specific neighborhood.  


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7 Ways to get your Offer Accepted without increasing Offer Price 

The Wichita Real Estate Market has been in a strong seller’s market for quite a few years and due to a slow growth in new inventory it doesn’t look like that will change very soon (for my April 1st Real Estate Market Report click here). If you are buying in today’s market it is important to make your offer strong so it stands out from other offers. So you don’t have to break the bank by just offering more, here are a few ways to increase the strength of your offer without just offering more. 

1.Make an offer quickly: The faster you make your offer the better chance you have of getting the property under contract. In the Wichita market today more than 50% of homes are under contract in 15 days or less, with the majority of those homes not even lasting a week. Make a strong offer quickly and you are much more likely to get your dream home. 

2.Waive the financing contingency: Often a home will fall out of the contract because the buyer is unable to obtain financing. If you waive the contingency for financing and make the earnest money non-refundable this reduces the uncertainty for the seller and ensure they are compensated for taking the home off the market whether you are able to close or not. 

3.Offer more earnest money: The more earnest money you offer the more serious a seller will take your offer. Since the earnest money you put up will go toward your own closing costs it doesn’t hurt you to pay more up front if the rest of the contingencies are still in place. 


4.Include a love letter: When a home is being sold by a family they often want to make sure their home is going to be enjoyed by the next owners. Writing a personal letter to the Sellers telling them how much you love the home and picture yourself living there makes your offer stand out from the pack. In fact, my wife wrote a love letter the Sellers of my own house and it helped us stand out from the investors who were looking to purchase the home. 

5.Be flexible on the timeline: More often than not the sellers will want the timeline to be as short as possible since they are trying to move for a reason. However, sometimes a seller will want to fit a longer timeline to allow themselves to move. Whether it is shorter or longer if you are able to accommodate the seller your offer will be stronger. 

6.Do not make a contingent offer: If you make an offer contingent upon the sale of your current home the likelihood of your offer being accepted in a seller’s market is very close to zero. The only way a seller would even consider an offer like this when there is a glut of buyers is if the offer is well above the other offers. An offer like this is highly uncertain to close so the seller expects to be compensated for this uncertainty. 

7.Make a complete offer: It may seem strange to you, but many offers submitted to do not include all the necessary paperwork. This one is particularly difficult for buyers because they are often working through their real estate agent, who is supposed to be the “expert”. However, not all real estate agents are created equal. To get the best chance of having a realtor that will submit a complete offer, make sure the agent is a professional. “If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.” If you make sure your realtor, looks professional, acts professional, and talks like an expert in their profession then you likely have a professional agent.  

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