Is the Real Estate Market Crashing?! Market Trends in Wichita, KS | July 2023 Update

No, the real estate market is not crashing in Wichita, KS. While there are some indicators showing a slowdown in sales compared to previous years, the market is still favoring sellers, and prices continue to rise, making it a favorable time to list a property.

 

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Thinking about the current situation of the real estate market in Wichita, Kansas? Wondering if it is a good time to buy or sell a house?

We’ve compiled in this article the things you need to know about the current situation of the real estate market in Wichita, KS! Keep reading and enjoy the market update.

Sales Performance and Trends in Wichita, KS

In June of 2023, over 1000 listings were closed in Wichita, Kansas, which is 11% down compared to the previous year. This indicates a trend of fewer sales compared to the same period in previous years.

Monitoring year-over-year trends is crucial for understanding the market's trajectory. Analyzing data over consecutive years reveals valuable patterns and long-term trends that may be obscured by short-term fluctuations. 

This approach filters out seasonal variations, providing a comprehensive view of the market's direction. Businesses can allocate resources efficiently and adapt to shifts in consumer behavior.

Year-over-year monitoring aids in early problem detection. Sudden deviations from established trends may indicate market shifts or emerging threats. Proactively addressing issues leads to sustainable growth.

As time passes and the effects of the COVID-19 pandemic gradually subside, the market is showing signs of returning to a more normal state, resembling conditions seen before the pandemic struck. The impact of COVID-19 was widespread, disrupting various industries and global economic activities.

 

Average Price Analysis in Wichita, Kansas

The average price of properties on the market is up to $235,000 representing a 5% increase year over year. Despite high-interest rates impacting buyers, prices are still rising.

Low-interest rates had a significant impact on buyer behavior, driving the current price appreciation in the real estate market. With lower borrowing costs, more people could afford mortgages, increasing the demand for properties. 

This heightened demand leads to higher property prices as buyers compete in the market. However, this situation can pose challenges for some buyers, and concerns about the market's sustainability arise. Careful monitoring of the real estate market in Wichita, KS conditions is essential for all parties involved.

Inventory Analysis in Wichita, KS

Listings have increased by almost 50%, with just over 1100 houses currently on the Wichita Real Estate market. While inventory is higher than the previous year, it remains low at 1.5 months, indicating a shortage of available properties in Wichita, Kansas.

The need for more inventory is urgent due to the growing buyer demands. Low-interest rates and improved economic conditions have led to increased demand for homes, but the available supply hasn't kept up. 

This scarcity drives up prices and creates a competitive environment for buyers. To address this, stakeholders must work together to increase housing supply through streamlined processes and incentives for developers, ensuring a balanced and thriving market.

 

Market Outlook and Predictions

Anticipations are that when interest rates fall, there will likely be an influx of new listings. This could potentially impact prices, but it remains to be seen how this will play out.

Falling interest rates can have a significant impact on housing supply and demand dynamics. Lower rates make mortgages more affordable, increasing demand for homes. This can lead to higher property prices and a shortage of available homes. 

However, in the long term, lower rates may stimulate new construction, potentially addressing housing supply issues and stabilizing prices. 

The overall impact depends on various factors, including existing inventory levels and the construction industry's response to rate changes.

Stay vigilant and monitor market developments and potential price adjustments. The real estate market is dynamic and influenced by various factors. Being informed allows you to seize opportunities as buyers, sellers, or investors. 

Track trends, consider external events, and stay proactive to make well-informed decisions and achieve your real estate goals.

 

Buyer's Perspective

It's currently a good time to buy, as there is not a lot of competition, and prices are still high. Buyers may want to consider purchasing before the expected rush of listings in the fall.

 

Seller’s Perspective

Sellers should take advantage of the current market conditions as it remains a good time to list their homes. With high prices and limited competition, sellers can expect favorable outcomes. 

However, it's anticipated that as interest rates fall, more houses may be listed for sale, potentially affecting price dynamics.

 

Final Thoughts

The real estate market is gradually returning to a more normal state, similar to pre-COVID conditions. Despite a decrease in closed listings by 11% compared to the previous year, this is typical for the summer months. Prices are still rising by 5% year over year, indicating sustained demand. While inventory has increased, it remains low at 1.5 months, favoring sellers. Buyers should act now as competition is low, and prices are still high. Monitor market developments closely for potential future shifts.