The Boom Is Off, And Wichita Homeowners Can Benefit
2020-21 saw the USA wrapped in the whirlwind of a red-hot property boom. However, that wasn’t replicated in Wichita, according to the Eagle. Instead, property markets saw a fall of 7.28% versus a national surge of 23.4% for the year-long period between June 2020 and 2021. This has created a significant buyer’s market in Wichita, but, importantly, not one that has seen construction slow - indeed, new construction projects continue to fly up across the state. A perfect storm of key factors means that the market will continue to be ripe for buyers.
As Time clearly outlines, the Wichita and Kansas mortgage scene is sticking to record low levels. This is always good news for buyers. As home finance experts Home Loan Expert outline, low interest rates at the time of mortgage purchase mean lower rates throughout the years. Over the lifetime of a product, that can mean savings in the thousands of dollars. When paired with higher inflation rates, that means your money goes further towards payments.
Low prices but rising
Kansas has low house prices compared to the national average - yet they are still seeing incremental rises over the years. According to KCUR, the average house price in the state is now $240,000. While that’s lower than the national average, around $300,000, that’s still an investment and one that is seeing real appreciation. Furthermore, as new infrastructure is constructed, these prices will continue to rise with land value.
BizJournals have highlighted the $94 million infrastructure spending boost bound for Kansas with the latest federal funding bill. While not, on the face of it, a huge sum, it will update sorely needed travel infrastructure to enable the state to be locally competitive again. That will bring with it a huge uptick in land value. As states become more connected, they become attractive for inter-state and international investment. The smaller towns and cities within the state, like Overland Park and Olathe, stand to benefit the most.
That’s a perfect storm for increased property prices, and buyers should be excited right now. The market will see inflation and hot properties will continue to gain value, making them real investments for the future. As the saying goes, strike while the iron is hot, and don’t wait around for further potential financial volatility in the national markets.