Right now I’m listening to John Mayer sing B.B. King’s “Everyday, (EVERYDAY!), Everyday, (EVERYDAY!), Everyday I have the blues….”
In the life of a real estate agent everyday (EVERYDAY!) everyday (EVERY-you get the point) we get asked by a friend,a neighbor, or a rand-o at the park “What’s the market like?” While I’ve found myself giving out numbers and success stories of clients selling their house within a few years of buying it and making money, most people don’t need something that analytical. I’ll try to stay (mostly) away from that here.
Our hottest market is between the $90,000 and $200,000. We measure how ‘hot’ the market is by the number of “Months of Inventory.” Right now we’re all the way down around 1-2 months of inventory! (That whole thing about not being real analytical just went out the window.) I’ll explain.
Imagine you will that you have 10 popsicles at your popsicle stand and your goal is to sell all the popsicles (You started out with a lot more). If you were selling around 10 popsicles an hour, you would only have 1 ‘Hour of inventory’ left. So you could expect that in an hour at current pricing that you would be OUT OF POPSICLES! (The horror!) But if you were only selling, say, 1 popsicle every hour, then… you would need to go get some more ice to keep them cold, because you would have 10 “Hours of inventory” left. Now, the real estate market has a few more moving parts in it than your popsicle stand, but one that we recognize immediately is price.
If your popsicles are selling so slow that you’re going to be out past bedtime trying to get rid of them, one sure way to make sure that your popsicles get bought faster is to lower the price. That way you can go play with Jimmy out by the creek. (Or ‘Crick’ for northern transplants to Kansas) Now, let’s go back to our ‘hot’ popsicle market for a second. If EVERYBODY wants a popsicle and they’re selling so fast that you’re going to be out of work in a hour, what do you do? Yep. Those popsicles just got more expensive.
Great. Popsicle prices are going up, but how does this relate to Wichita’s real estate market?
It means home prices are going up.
With interest rates so low and fixed for the life of the loan, you’re payment will only fluctuate with property tax variations. (Ex: not much.) Your month to month expense would be pretty close to flat. People have caught on and are hunting for a house they can live in and have the assurance of not having to move to a smaller place in a few years because rent went up on them.
In short, in most price ranges our inventory isn’t keeping up with the demand, driving prices higher. If nobody were to list their homes, we would theoretically have ZERO homes to sell people between $90-200k in 2 months. Not necessarily a bad thing, since the reason that it’s happening is the realization that homeownership keeps you from being a recipient of the above graph.
Bottom line: Get in touch with our real estate experts today to get more info on how the Wichita market is doing. Then get in on rising prices and low interest rates by buying a home!