Future of Wichita’s Real Estate Market

New real estate market trends, high interest rates, supply and demand issues, and fluctuating economic crises in the market predict a bleak future for the city of Wichita, Kansas. These changes have also been foreseen by the State Real Estate Center, which, in a recent report, indicated that the city will face a housing shortage in the coming months.

According to forecasts, property prices are expected to remain high, and the real estate market will experience fewer sales transactions compared to 2023. These detailed findings in the report were based on economic indicators from both Wichita and the nation.

The Wichita State Real Estate Center predicts that home sales in the metropolitan area will end the year with a 10.4% decrease, with approximately 9,470 properties sold, and that this figure will drop by another 80 properties during the year.

Similarly, the report notes that last year’s reduction in sales was due to several factors and highlighted that quality homes have consistently sold quickly with multiple offers.

Among the factors affecting the real estate market are high mortgage rates, which have considerably slowed the demand in Wichita. However, the most significant problem has been the shortage of homes available for sale, the report states.

The center also forecasts that home prices will continue to rise at a “steady pace,” with a 4.2% increase and another 3.4% rise by the end of the year.

As for rental properties, the analysis does not assess trends in current prices and availability of properties in the city. It only highlighted the concern of Wichita’s administration and representatives about the deficit of properties available for rent.

What the report does consider is a positive future for the city and its surrounding areas in terms of affordable new home construction. However, the increase in interest rates has had an even greater effect on new home construction, an increase that affects both buyers and builders, who find it increasingly difficult to obtain financing for their projects.

Regarding construction, the report also predicts that the number of permits issued for building single-family homes will increase significantly this year.

Available Foreclosures: 

Wichita – 150 homes available

Manhattan – 75 homes available

By Elias DaSilva | September 27, 2024