Is Wichita a housing buyer's or seller's market? While buyers may face challenges due to limited inventory, sellers are poised to capitalize on the competitive landscape, with opportunities to secure favorable deals. Wichita's housing market paints a picture of resilience and opportunity. With prices on the rise and transactions unfolding at a brisk pace, the market is a testament to the city's economic vitality and desirability as a residential destination.
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Wichita Housing Market Trends in 2024
According to Redfin, as of February 2024, the market has seen a 10.8% surge in home prices compared to the previous year, with the median price pegged at $210,000. The swift pace of transactions is evident, with homes typically spending 18 days on the market, a slight uptick from 12 days in the prior year. Despite a marginal decrease in the number of homes sold, down to 297 from 299 last year, the market exudes resilience.
Wichita Current Market Dynamics
Wichita's housing market exudes vitality, with a median sale price resting at 50% below the national average. This competitive spirit is reflected in the rapid pace of transactions, with homes typically selling within 20 days. Multiple offers are commonplace, often accompanied by waived contingencies, indicating a robust demand-supply dynamic.
On average, homes sell for approximately 1% below the listed price and go under contract within 20 days. However, the scenario changes for sought-after properties, where homes can fetch 2% above the asking price and secure a sale within a mere 5 days.
Market Competitiveness
Competitiveness defines the Wichita market, with 32.7% of homes sold above the listed price, marking a 0.2 pt increase from the previous year. The sale-to-list price ratio stands strong at 98.9%, indicating a resilient market poised for further growth.
Amidst this fervent activity, the question arises: Are there enough homes for sale to meet buyer demand? While the market thrives, the inventory may pose challenges for eager buyers. However, this scarcity fuels competition, urging buyers to act swiftly and decisively to secure their desired properties.
Future Market Outlook for Wichita
Peering into the future, the Wichita housing market appears poised for sustained growth. The current trajectory suggests continued appreciation in home values, albeit at a steady pace. As the economy flourishes and consumer confidence remains high, the demand for housing is expected to remain robust, underpinning the market's resilience.
Wichita Housing Market Forecast for 2024 and 2025
According to Zillow, the average home value in Wichita stands at $186,528, reflecting a 6.2% increase over the past year. Homes in this area typically go pending in approximately 12 days, indicative of a rapid turnover in the market. To gain a deeper understanding, let's delve into the various metrics shaping this housing landscape.
For Sale Inventory and New Listings
As of February 29, 2024, the for sale inventory in Wichita remains dynamic, with 654 properties listed. Simultaneously, 254 new listings hit the market on the same date, underscoring the constant influx of available properties. This abundance of options provides prospective buyers with a plethora of choices, contributing to the competitive nature of the market.
Median Sale and List Prices
The median sale price as of January 31, 2024, sits at $230,519, while the median list price on February 29, 2024, stands slightly higher at $243,967. These figures illuminate the financial landscape of the housing market, offering insight into the pricing trends that both buyers and sellers can leverage.
Deciphering the Wichita MSA Housing Market Forecast
When it comes to understanding the Wichita Metropolitan Statistical Area (MSA) housing market forecast, it's crucial to rely on reliable projections. The MSA encompasses multiple counties, with Wichita serving as its central hub. This diverse region boasts a robust housing market, underpinned by various economic factors.
Looking ahead, the forecast for the Wichita MSA presents an optimistic picture. From March 31, 2024, to February 28, 2025, the projected growth rate ranges from 0.7% to 1.8%. This anticipated upward trajectory signals potential opportunities for both buyers and sellers alike, as the market continues to evolve.
Are Home Prices Dropping in Wichita?
Contrary to any speculation, home prices in Wichita are not experiencing a significant drop. Instead, they have shown a consistent upward trend over the past year, indicating stability in the market. While there may be minor fluctuations in certain areas, overall, the trend suggests continued growth. With a rapid turnover of homes and competitive pricing, it leans towards being a seller's market. However, with abundant inventory and fluctuating prices, buyers still have opportunities to find deals that suit their needs.
Is Now a Good Time to Buy a House in Wichita?
For individuals considering purchasing a home in Wichita, the current market presents favorable conditions. With moderate interest rates as compared to last year and a stable housing market, now could indeed be a good time to make a purchase. However, it's crucial for buyers to conduct diligent research, assess their finances, and consult with real estate professionals to ensure they make a decision that aligns with their long-term goals.
Will the Wichita Housing Market Crash in 2024?
Home Sales Projection
Weaker demand and tight inventories are hindering sales growth in the Wichita area. The forecast suggests a year-end decrease of 10.4%, resulting in 9,470 units sold. Looking ahead to 2024, sales are anticipated to continue declining to 9,390 units.
Construction Outlook
New home construction activity in Wichita is expected to experience a 7.2% decline this year, with 1,255 new single-family permits projected. However, there is optimism for 2024, with an anticipated 8.8% increase in permitting activity to reach 1,365 units, contingent on mortgage rates falling as expected.
Home Price Trends
Despite limited inventory, Wichita home prices are projected to continue appreciating at a more typical rate. The forecast indicates a 4.2% increase in home values for the current year, followed by another 3.4% rise in 2024.
Note: The forecast is based on the analysis conducted by the Wichita State University Center for Real Estate.
It is always important to remember that the housing market is cyclical and can change quickly. It is impossible to predict the future with certainty, so it is important to do your own research and speak with a qualified real estate professional before making any decisions about buying or selling a home in Wichita.
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References:
- https://www.redfin.com/city/19878/KS/Wichita/housing-market
- https://www.realtor.com/realestateandhomes-search/Wichita_KS/overview
- https://www.wichita.edu/about/wsunews-releases/2023/09-sept/realestate_3.php