Wichita home prices (Derby, Goddard, Maize: for sale by owner, rent, loan)

[hudsucker]

Are there any Realtors here that can give me a no spin opinion on home sales? The people I have been talking to tell me that homes are still selling but only if they are priced below market. Others are sitting on the market. I was told also that there is a lag time with the economy and home values in Wichita. One woman who in in sales of homes said that the drop in home prices will show up sometime this fall. I was looking in a couple of west side subdivisions and I saw that the builders had stopped home building. In the several subs I looked at there was one new home going up the rest were finsihed and sitting for sale. I would hate to buy a home now and have it devalue 5% in the first year. I also saw a lot of for sale by owners and the price was trying to get full value with realtor fees. I don't think this is reality but the sellers may need to see this first hand with homes sitting on the market.

[drjones96]

Nothing is selling in my neighborhood but the traffic is picking up as of late. The house across the street from us has been on the market for months without a serious bite. Most people move in the summer anyway so we'll see what happens.

As for pricing. I talked to a local builders agent a few weeks ago and they are ponying up some pretty serious incentives for buying. Cash incentives....like $5k on some houses. I sure didn't see that kind of thing a year ago. It seemed like the prices were pretty level with what they were selling for a year ago. But if you factored in the incentives.....that would indicate a decline of about 2.5%. This is pretty localized though so I wouldn't say "Wichita home prices have declined 5% across the board."

[drjones96]

Correction....came home last night and the house across the street had a sold sign on it...

[talbet]

I wonder is it sold for less than asking price? Some people are moving homes because they are priced under value. Where are you located if you don't mind.

[hudsucker]

The homes I have been looking at are selling under what they were a year ago. Klosmyer [spelling?] has slowed down building in his subdivisions because homes are sitting on the market.

[drjones96]

Originally Posted by talbet

I wonder is it sold for less than asking price? Some people are moving homes because they are priced under value. Where are you located if you don't mind.

Derby.

I don't know what it sold for but I would bet there was either an incentive or a price reduction.

Whether or not the final sale price was under value I have no idea...because even with a price reduction it could have sold for right at market value....

Either way...it's nearly the same as MY house that I bought 8 months ago and they probably got it for less $/sq ft.....

[drjones96]

Originally Posted by hudsucker

The homes I have been looking at are selling under what they were a year ago. Klosmyer [spelling?] has slowed down building in his subdivisions because homes are sitting on the market.

Klausmeyer stopped building in my neighborhood recently. It's nearly finished though....

[MovingToWichita]

Does the neighborhood in Wichita make any difference in whether homes are selling or not? Are the popular neighborhoods still going for asking price, or have they dropped?

[talbet]

From every thing I have heard from agents, homes are all selling slower than they were a year ago. Homes from 75k to 150k are moving better than homes priced above 150k which are sitting on the market longer than they have been. Unemploymet is still fairly low but catching up. Last I saw it was at around 6.5% and rising. I had a relitive sell a home on the west side in Turkey creek and he paid 93 for it 3 years ago, he put it on the market at 99 and it did sell for asking but he had to pay the closing cost of 8k and after he paid for his costs and comission he lost money. The price made it show a lot, but mostly he got negative comments. People wanted more, they did not like the lawn, thought the shingles were inexpensive, he also had to pay for guttering as it was an FHA loan and they require it. So he got 84k out of the house after 3 years. He lost 8k and all the interest and taxes he paid for 3 years, I figured it out to be around 25k, so if he would have rented a nice home for around 800 a month 28k for 3 years and 5k in a MUT fund. Personally I would rent for a year and get to know the area before dumping money on a home. I bet next months rent that prices go down in that time anyway

[KS Farm Gal]

Originally Posted by talbet

he also had to pay for guttering as it was an FHA loan and they require it.

Well he certainly got taken for a ride there! Too bad, as FHA does NOT presently require guttering. Stupid stipulations by individuals who don't understand the program created this non-factual 'requirement'... which USED to be correct as part of FHA funding. FHA threw the baby out with the bathwater a few years ago and many idjits on the sales and appraising end of things haven't yet caught up with the new reality.

Little things like cracked windows? OOK fine with FHA. If it isn't actively leaking water or gas, and there are no presently bare wires or other factual health hazards, FHA 'requirements' are pretty minimal - about the only thing left of the former die hard can't break the rooles "FHA required repairs" is if there is ANY peeling paint on a pre 1976 constructed home, it must be corrected, and in theory must be corrected 'properly' according to EPA lead paint regs.

For new and near new construction Wichita has held its value a lot longer and better than many other areas even in the fairly stable Midwest .... Wichita was also one of the top 10 'best' places nationally to live, as recently as last year. If you are seeking new construction, and have kids, might want to look at Maize and Goddard areas... <shrug> as for holding value in these troubled times? Probably one of your better bets... just make sure you understand the difference between affordable monthly payments and VALUE.