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Expecting a dip in Wichita property prices in 2025? Think again.
Despite economic shifts, the Wichita real estate market is poised for growth, driven by increasing demand and limited housing supply.
In this blog post, we will explore why property prices in Wichita are set to rise in 2025.
We rely on solid, up-to-date data and statistics from multiple credible sources, ensuring our analysis is grounded in reality.
By thoroughly examining this information, we draw our own conclusions, which we share with you at the end of this post. Enjoy the read!
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
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- Yes, investing in real estate is a solid option in 2025 in Wichita
1) In Wichita, there are only about 0.44 homes for each person, which is quite limited
Signal strength: strong
The fact that there is around 0.44 home per inhabitant in Wichita suggests a limited housing supply relative to the population. This ratio indicates that housing availability is relatively low, which can lead to increased demand as more people compete for fewer homes.
In Wichita, a factor that locals know is the steady influx of students and professionals due to the presence of several universities and growing industries. This influx contributes to a consistent demand for housing, further tightening the market.
As demand continues to outpace supply, it's reasonable to expect that housing prices will rise in the coming years, including 2025. Investors should consider this dynamic as a potential opportunity for capital appreciation in the real estate market.
If the ratio were to increase significantly, say to 0.6 home per inhabitant, it might indicate a more balanced market, potentially stabilizing prices.
Source: USCensus
2) Redfin considers the Wichita real estate market to be "very competitive"
Signal strength: strong
The fact that Redfin ranks the Wichita real estate market as "very competitive" is a strong indicator that housing prices are likely to rise in 2025.
In Wichita, the most competitive properties are single-family homes located in suburban areas, which are highly sought after. This is because many people are looking for more space and a quieter environment compared to urban settings.
Additionally, suburban areas in Wichita offer good schools and community amenities, making them attractive to families. The demand for these properties is high, and when demand exceeds supply, prices tend to increase.
If the market were to become "less competitive", it might suggest that prices could stabilize or even decrease.
Source: Redfin
3) Wichita home values have risen by 3.5% since last year, and this trend may persist
Signal strength: strong
The fact that home values in Wichita have already changed by 3.5% since last year is a strong indicator that the housing market is on an upward trend. When we see such a percentage increase, it often suggests that demand is rising, which can lead to further price increases.
Currently, the median home price in Wichita is around $196,225, which is relatively affordable compared to many other markets. This affordability can attract more buyers, potentially driving prices up as more people compete for available homes.
Additionally, the median sales price per square foot is around $120, which is another metric showing the value buyers are willing to pay. If these numbers continue to rise, it would further support the assumption that housing prices will increase in 2025.
However, if the percentage change in home values were to drop significantly, it might indicate a cooling market, challenging the assumption of rising prices.
Source: Redfin
4) Three major websites predict that home prices in Wichita will rise in 2025
Signal strength: strong
There are currently three major websites forecasting a positive growth for home prices in Wichita in 2025, which is a promising signal for potential investors.
Among these forecasts, Zillow is the most optimistic with a projected increase of 7.70% in home prices, followed by Realtor's forecast of a 6.20% rise, and finally, Redfin predicts a 4% growth. The difference in these forecasts highlights a significant gap in expectations, which is important to consider.
While these predictions are encouraging, it's crucial to remember that forecasts should be taken with caution as they are based on assumptions and models that may not fully capture future market dynamics. Therefore, we will also rely on strong, reliable, and actual data to make a more informed and professional judgment about the market.
If these forecasts were to predict a negative growth or a decline in home prices, it would suggest a different outlook for the Wichita housing market.
Sources: ZillowForecasts, RedfinForecasts, RealtorForecasts
5) In Wichita, a local can afford to buy a house in about 3.2 years, which is relatively quick
Signal strength: moderate
In Wichita, it would take around 3.2 years for a local to buy a house, which is relatively short compared to many other places. This indicates that the housing market is currently affordable, but it also suggests that there is room for housing prices to increase in the future.
The median household income in Wichita is approximately $61,281, which is a decent income level for the area. With a median home price of around $196,225, homes are accessible to many residents, making the market attractive for potential buyers.
As more people find it feasible to purchase homes, demand could rise, leading to an increase in housing prices by 2025. This affordability, combined with potential demand growth, makes Wichita a promising market for real estate investment.
If the time it takes for a local to buy a house were to increase significantly, say to over 5 years, it might indicate that the market is becoming less affordable, which could slow down price growth.
Source: USCensus
6) Wichita's "Livability" score of 68 indicates a favorable quality of life
Signal strength: moderate
The livability score of 68 in Wichita is considered good because it reflects a balance of factors that make the city appealing to residents. This score indicates that Wichita offers a quality of life that is attractive to potential homebuyers and renters.
One specific characteristic contributing to this score is the affordable cost of living, which is lower than the national average. Additionally, Wichita boasts a strong sense of community, with numerous local events and activities that foster connections among residents. The city also has a growing job market, particularly in industries like aviation and healthcare, which attracts new residents and supports economic stability.
These factors combined suggest that the demand for housing in Wichita is likely to increase, potentially driving up prices in the future. As more people recognize the benefits of living in Wichita, the housing market could become more competitive, leading to higher property values.
However, if the livability score were to drop below 60, it might indicate declining conditions that could deter potential buyers and investors, potentially leading to stagnation or a decrease in housing prices.
Source: AreaVibes
7) In Wichita, about 32% of homes sell for more than their listing price
Signal strength: moderate
In Wichita, a notable trend is that around 32% of sales close at a price higher than the listing price. This indicates that buyers are willing to pay more than what sellers initially ask for, suggesting strong demand. When demand is high, it often leads to increased competition among buyers, which can drive prices up.
Such a scenario is a classic sign that housing prices are likely to rise in the near future. If more buyers are competing for the same properties, sellers gain leverage to ask for higher prices. This dynamic is a key factor in predicting an upward trend in housing prices for 2025 in Wichita.
However, if the percentage of sales closing above the listing price were to drop significantly, say to below 10%, it might indicate a shift. This would suggest that buyers are no longer willing to pay more than the asking price, potentially signaling a cooling market.
Source: Zillow
8) Wichita's median home price is significantly lower, at 55% below the "national average."
Signal strength: minimal
The fact that Wichita still has a median home price 55% below the national average suggests that there is significant room for growth in the housing market. When a market is priced significantly lower than the national average, it often indicates potential for appreciation as more people and investors discover the value.
In Wichita, the most expensive properties are likely to be luxury homes in areas like College Hill, where historic charm and proximity to amenities drive up prices. On the other hand, the cheapest properties might be small, older homes in neighborhoods like South Central, where prices are kept low due to less demand and older infrastructure.
As more people look for affordable housing options, Wichita's lower prices could attract new buyers, leading to increased demand and higher prices. However, if the median home price in Wichita were to rise to only 10% below the national average, it might suggest that the market has reached a saturation point, reducing the likelihood of further significant price increases.
Source: Zillow
9) In Wichita, home prices have steadily increased by an average of 6.8% each year over the past decade
Signal strength: minimal
The fact that home prices in Wichita have appreciated at an average rate of 6.8% over the last decade is a noteworthy signal for potential investors. This consistent growth rate suggests that there has been a steady demand and price growth in the housing market over the years.
While a positive 10-year average home value appreciation indicates a history of favorable conditions, it's important to remember that past performance doesn’t guarantee future results. However, such a trend can still be a useful indicator when considering future investments.
Investors might find this historical data encouraging, as it reflects a market that has shown resilience and potential for continued growth. Yet, it's crucial to remain cautious and consider other factors that might influence the market in 2025.
If the appreciation rate were to drop significantly, say below 2% over a similar period, it might suggest a weakening market, potentially signaling a different investment outlook.
Source: NeighborhoodScout
So, are prices going to climb in Wichita in 2025? Absolutely
Wichita's housing market is poised for price increases in 2025, driven by several compelling factors.
Firstly, the limited housing supply, with only 0.44 homes per person, combined with a steady influx of students and professionals, creates a high demand scenario. This imbalance between supply and demand naturally leads to rising prices. Additionally, Redfin's classification of the market as "very competitive" further supports this trend, as high competition often results in price hikes.
Moreover, historical data shows a 3.5% increase in home values over the past year, and a consistent 6.8% annual appreciation over the last decade, indicating a strong upward trajectory. Forecasts from major websites like Zillow, predicting a 7.70% increase, reinforce this outlook. With a median home price 55% below the national average, there's ample room for growth, making Wichita an attractive market for buyers and investors alike.