Housing market remains strong, impact ripples across to homeowners

Conditions continue to be favorable to sellers as demand from buyers remains strong. The price of housing in Kansas and across the U.S. is on an upward trend, with the average sale price up 7.5% over the year. Despite higher interest rates, buyers are not shying away from the high demand. For 2023, most Sedgwick County homeowners saw a 10% increase in their home’s appraised value, while for 2023 the most sedgwick county homeowners saw an increase of 10%. Kansas lawmakers are considering a constitutional amendment to cap valuation increases at 4% in a year with exceptions including for new construction and remodeling. However, this idea may lead to an artificial value, so it could mean people are reimbursed less than the property is worth.

Opublikowany : 2 lata temu za pomocą KWCH Staff, Shawn Loging w Finance

WICHITA, Kan. (KWCH) - The price of housing keeps on an upward trend, a situation seen in Kansas and across the U.S. Data from REALTORS of South Central Kansas shows while home sales slowed some last month, the average sale price is up 7.5% over the year.

Conditions continue to be favorable to sellers as demand from buyers remains strong. After three years of an especially active housing market, REALTORS of South Central Kansas sees inventory increasing and prices holding strong.

Braden McCurdy with McCurdy Real Estate and Auction and president of REALTORS of South Central Kansas said even with higher interest rates, buyers are not shying away.

“We are seeing inventory coming back up, finally. We had gotten as tight as 0.6 months supply of inventory and then today, we’re sitting at 1.9 months supply of inventory, again with a balance market being in the five to six (month) range,” McCurdy said.

While there are fewer home sales happening, home prices continue increasing. McCurdy said it’s forecasted to be about a 4.2% appreciation rate this year, a slower rate than what’s recently been seen.

“Values continue to hold and continue to slowly appreciate. A little bit more pre-COVID application rates,” McCurdy said.

For 2023, most Sedgwick County homeowners saw a 10% increase in their home’s appraised value.

“You had high inflation. That pushed prices,” said Sedgwick County Appraiser Mark Clark. “Naturally, you have a tight supply. When you have all of that happening, appraised values will increase, and they did,”

Kansas lawmakers are considering a constitutional amendment to cap valuation increases at 4% in a year with exceptions including for new construction and remodeling. Clark said while that idea may sound beneficial, that idea comes with drawbacks. He said that might discourage people from making property improvements and it doesn’t take into consideration if there’s a downturn in the market.

“We’re still going to be putting that 4% on and maybe the market has dropped 20%. People are going to be really angry,” Clark said.

He said another concern is FEMA reimbursement after a disaster. That is based on the official appraised value. Clark said a cap would lead to an artificial value, so it could mean people are reimbursed less than the property is worth.

Tematy: Real Estate, Markets

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