Low interest rates lead to a competitive Wichita housing market
WICHITA, Kan. (KWCH) - It’s a seller’s market as home buyers are trying to take advantage of low interest rates with a struggling economy due to COVID-19.
A local real estate agent as well as a first time home buyer said it’s a scramble to buy a house right now.
“We looked at a 150 thousand dollar house today in Derby that’s been on the market for three days and already have five contracts,” Dustin Sharp, a first time home buyer said.
Sharp and his wife said interest rates as low as 2.5% enticed them to look at the housing market.
“That combined with the fact that I sort of expected maybe a break in the market to happen because of COVID,” said Sharp.
“We’re seeing the interest rates being so low. You’re also seeing a lot more competition for the houses, multiple offers. As soon as a house comes up, people are fighting over it, 8-10 multiple offers,” Realtor at ERA Great American Reality Ben Meyer said.
Meyer said it’s getting to the point where a house is under contract the day after it’s listed.
“We’re even seeing people buy houses sight unseen. They’ll put an offer on the house contingent on walking through it. People just move faster than ever,” said Meyer.
“You have to be able to make an offer on the day you see a property if you’re interested at all,” said Sharp. “Otherwise you won’t be in the lineup of final perspective buyers.”
Meyer said houses with pools and acreage are the most popular properties right now as families are trying to get out of the house while maintaining social distance.
“What we’re looking at now is perhaps new construction that we can sort of guide the process,” said Sharp.
“Since we have such a shortage of inventory as far as resale goes, a lot of people have been seeking out building a house because the rates are so low and the payments are so low,” Meyer said.
According to Meyer, nearly half of people looking at the real estate market right now are first time home buyers like Sharp.
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