Wichita Housing Market Evolution: What’s Changed in the Last 20 Years and What’s Ahead

Over the past two decades that I've been a real estate agent, Wichita has experienced significant shifts in its housing market. In the early 2000s, Wichita's housing market was characterized by affordability and steady growth. From what I recall, home prices increased on average 1-3% year after year until the market "correction" in 2008 and 2009.  From 2013-2019, home values increased modestly by approximately 4% annually. This period of stability was supported by a balanced inventory of homes and consistent demand.

 

The 2008 financial crisis had a muted impact on Wichita compared to other regions. While home sales declined, the market remained relatively stable, avoiding the severe price drops seen elsewhere.  I remember telling buyers and sellers... We didn't see the massive upswing in prices that the coasts saw, therefore we didn't see the crash that they saw.  By the early 2010s, the housing market began to recover, with home sales and prices gradually increasing. 

 

The COVID-19 pandemic in 2020 brought unprecedented challenges and changes to the housing market.  Honestly, as an investor and as a real estate agent, I'd rather live through 2008 and 2009 than go through another 2020.  It was hard to predict values.  I felt investors and agents were slapping anything on the market (instead of a quality product).  Hot markets always bring new investors and new real estate agents out of the woodwork, which is when I feel buyers and sellers need the most guidance.  Low mortgage rates led to a surge in demand, while supply remained constrained... Somewhat due to lack of affordable options for first time buyers, some due to older sellers being scared for their health to sell and have buyers in their house.  This imbalance resulted in significant home price appreciation, with single-family home prices growing by nearly 11%. The tight inventory continued to put upward pressure on prices, even as mortgage rates began to rise.  These low-interest rate mortgages are still affecting our market with homeowners deciding to remain in place instead of selling and buyers not making decisions waiting for rates to go back to 3%.  (SMH)  When rates started creeping up, I looked back on deals from 22 years ago... The rates were in the 6's and homeowners were refinancing.  Buyers need to understand that since the 1950's, the average interest rate is about 6% and IF rates ever drop to those record low levels, the prices will spike again.

 

As of 2025, Wichita's housing market remains competitive. The median sale price of a home is approximately $240,000.  Homes that are priced well are still selling in just a few days and approximately 24% of homes are still selling above the asking price.  Then we have the home sellers that want to test the market with the pricing.  These homes are becoming stale on the market, especially if the seller isn't reducing their price in the first few weeks.  The price point hasn't seemed to matter either.  I've had clients offering $25,000 over asking on $500,000+ properties over the past 2 weeks and we've lost out on 3 deals to higher offers.  As I type this, I'm hosting an open house.  A buyer just commented, "things are flying off the market or they are staying on the market forever... those are the houses that must have major issues."  My response, "the issue is the price.  I don't care what condition or what neighborhood, if it's priced correctly, it's selling."  I'm also trying to educate my older sellers who have the idea of "we can always come down in price."  That is an old school thought process.  Homes that sit have stigmas.  Homes that are priced well or slightly under value are driving the prices up.  When we price a home, we are asking the market, "is it worth this price?"  Then the market responds.

 

Looking ahead, the Wichita housing market is expected to maintain its upward trajectory, although from what I'm reading, at a more moderate pace... back to that 4%. The combination of sustained demand, limited inventory, and economic factors suggests that home prices will continue to rise.  We are still one of the few markets of our size that have homes selling in the $100-thousands.  So, keep investing in the stable market Wichita provides.  If we don't, other markets will.