RESIDENTIAL

RESIDENTIAL

Sales

The residential market stayed active in 2013 with the highest number of total units sold since 2008.  The 8,975 houses sold represented a 9.7% increase over 2012’s 8,181.  The strong sales activity caused the supply of homes on the market to decrease by 13.3% (456 units).  The inventory for existing homes at year-end equaled a 4.6 month supply which indicates the market has swung slightly in favor of the seller.  The improved market is starting to cause a shortage of inventory in some price ranges around the city.  New home inventory was 5.2 months, which is essentially a balanced market.  As expected, the increased sales and lower inventory pushed up the average sales price.  The combined average price for new and existing homes was $140,311 which was a 6.3% increase over 2012.

Starts

Buoyed by a declining inventory of existing homes, new home starts increased by 27% from 2012.  Heightened activity was experienced throughout the area with Wichita having a 27% increase compared to 25% in the other areas.  Inside Wichita there were 538 new housing starts compared to 457 in the outlying areas.  Andover (85 units), Maize (86 units) and Sedgwick County (89 units) had the most activity outside of Wichita.  The 995 total new home starts in 2013 is still substantially less than the 2,702 houses which were started during 2004, at the peak of the housing boom.

FORECAST

The residential market should stay active in 2014 with the number of sales similar to 2013.  The National Association of Realtors is projecting that the growth in sales could be limited due to rising interest rates, escalating prices and lack of inventory.  The construction of new homes will need to increase to meet demand, but growth will continue to be hindered by lending restrictions on builders.

Residential Sales Number of Units Sold

Year Values
2013 8,975
2012 8,181
2011 7,479
2010 7,820
2009 8,617
2008 10,039
2007 11,936
2006 12,318
2005 11,931
2004 10,193

Residential Sales Average Sales Value

Year Values
2013 140311
2012 132020
2011 133554
2010 136000
2009 135203
2008 139847
2007 132100
2006 128635
2005 119992
2004 115125
CIPS logo RICS logo RLI logo CCIM logo CRE logo SIOR logo ALC logo