The current state of the Wichita housing market leans towards sellers. While the lower median sale price and the possibility of securing homes below the list price may appeal to buyers, the competitive nature of the market and the scarcity of available homes may provide an advantage to sellers. With a potential slowdown in price increases and a decrease in homes sold above the list price, the future market outlook could bring about a more balanced scenario, benefitting both buyers and sellers.
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Wichita Housing Market Trends in 2024
How is the Housing Market Doing Currently?
In January 2024, the Wichita housing market exhibited remarkable trends, witnessing a 16.5% surge in home prices compared to the previous year. According to Redfin, the median price for homes reached $205K, reflecting a substantial increase. However, this upward trajectory in prices is juxtaposed with a noticeable extension in the time homes spend on the market, rising from 13 days last year to 23 days. Despite this, the number of homes sold experienced a decline, with 242 homes changing hands in January this year, down from 279 in the same period last year.
How Competitive is the Wichita Housing Market?
Wichita proves to be an exceptionally competitive real estate arena. The median sale price in the city is 49% lower than the national average, making it an attractive option for potential homebuyers. The speed at which homes are snatched off the market is noteworthy, with the average selling time being 19 days.
Multiple offers are not uncommon, and some buyers even opt for waving contingencies to secure their desired homes. On average, homes sell for about 2% below list price but manage to go pending swiftly in approximately 19 days. For those eager to expedite the process, homes can sell for about 1% above list price, finding new owners in a mere 6 days.
Are There Enough Homes for Sale in Wichita to Meet Buyer Demand?
The supply-demand balance in Wichita is a key consideration for both buyers and sellers. While the market is competitive, the number of homes sold in January this year decreased compared to the previous year. The challenge lies in the availability of homes to meet the existing buyer demand. As homes receive multiple offers and the time on the market extends, potential buyers may grapple with a limited inventory.
What is the Future Market Outlook?
The current trends in the Wichita housing market raise questions about its future outlook. The year-over-year change in the sale-to-list price ratio indicates a 1.3-point decrease, reaching 98.3%. Similarly, homes sold above the list price experienced a 7.2-point decrease, falling to 24.4%. These shifts suggest a potential stabilization or even a cooling off in the market, which could impact buyer and seller dynamics in the coming months.
Affordable Housing Market
Compared to the national average, Wichita's housing market is more affordable. This makes it a great option for first-time homebuyers or those looking for a more affordable place to live. Whether you're a first-time homebuyer, a growing family, or a retiree looking for a slower pace of life, Wichita has a variety of neighborhoods and homes to choose from. With its strong job market, growing economy, and vibrant culture, Wichita is a great place to call home.
Wichita Housing Market Forecast for 2024 and 2025
Home Value: According to Zillow, the average home value in Wichita currently stands at $182,834, reflecting a 6.0% increase over the past year. Homes in the area are moving swiftly, typically going pending within approximately 13 days as of January 31, 2024.
For Sale Inventory: As of January 31, 2024, there are 680 homes listed for sale in Wichita. This metric provides insights into the available housing options within the market.
New Listings: In January 2024, the housing market saw the addition of 245 new listings, indicating ongoing activity and potential opportunities for both buyers and sellers.
Median Sale Price (December 31, 2023): The median sale price at the end of 2023 was $226,880, offering a benchmark for the cost of homes within the Wichita housing market.
Median List Price (January 31, 2024): The median list price for homes in Wichita as of January 31, 2024, is $234,967, providing a snapshot of the current pricing landscape.
Decoding the Wichita MSA Housing Market Forecast
Looking into the future, the Wichita Metropolitan Statistical Area (MSA) Housing Market Forecast suggests promising growth. According to the forecast data, as of January 31, 2024, the expected increase in home values is projected to be 0.3% by February 29, 2024, escalating further to 1.4% by April 30, 2024, and a notable 4.9% by January 31, 2025. This positive trajectory indicates a robust and resilient housing market in the Wichita MSA.
The Wichita MSA encompasses the city of Wichita and its surrounding counties, forming a cohesive economic and social region. In this context, the MSA serves as a statistical designation defining the broader metropolitan area. The size of the Wichita housing market is substantial, considering the diverse range of homes and the consistent growth observed in property values. The market's resilience, as depicted in the forecast, positions Wichita as an attractive destination for real estate investments.
Are Home Prices Dropping in Wichita?
As of the latest available data, there is no indication of a decline in home prices in Wichita. The median list price as of January 31, 2024, is $234,967, showcasing a robust real estate market. Homebuyers and sellers should monitor market updates regularly to make informed decisions based on the most recent pricing trends.
In the current Wichita housing market, the balance between buyers and sellers is dynamic. With an average home value increase of 6.0% over the past year, sellers may find themselves in a favorable position. However, the relatively short time homes spend on the market, approximately 13 days, suggests a competitive landscape, providing buyers with opportunities to act swiftly. It is essential for both buyers and sellers to stay informed about market trends and adapt their strategies accordingly.
Is Now a Good Time to Buy a House in Wichita?
Considering the competitive nature of the Wichita housing market, characterized by a relatively short time on market and consistent value growth, it could be an opportune time for buyers to explore their options. While market conditions may favor sellers, buyers can benefit from the projected growth in home values according to the MSA Housing Market Forecast. As always, individual circumstances and preferences play a significant role in determining the right time to make a real estate investment.
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.
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.