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.