Demand for new homes keeps prices climbing
WICHITA, Kan. (KWCH) - This month, home buyers in the Wichita area get a closer look at what new home construction is coming on the market, and the prices.
It’s as demand is at a historic high, but it is also becoming more expensive to build.
“Right now, they’re allowing me to sell this lot, this lot and these two,” said Keller Williams realtor, Barb Maley.
There is a lot of home buyers in the market.
“Today, houses are flying off the market. New homes typically are not staying like they were,” said Maley.
And for realtors like Maley, it means she is closely working with builders, selling homes as quickly as they have keys available.
“10 active listings and I have three areas that have opened up new lots,” said Maley.
And in the Talia neighborhood in Western Wichita. It’s a project that started construction more than a year ago and in all totals 330 lots for homes.
“Interest rates are at an all-time low, so it’s getting a lot of people out here to buy new,” said J. Russell realtor, Sarah King.
Those interest rates are also helping home buyers not be discouraged by the price of their dream home going up.
“Prices of homes have gone up tremendously with the lumber prices but it’s not keeping people from coming out and building new and buying,” said King.
Realtors said the increased price of raw materials like lumber to build these new homes is adding several thousand to tens of thousands of dollars to the price of these properties.
The National Association of Home Builders estimates it’s adding 24-thousand dollars to the price of a single-family home, with framing lumber prices up more than 180% since last spring.
Driven by the demand for new homes and supply shortages that has realtors with one main piece of advice for home buyers, act fast.
Part of the demand for new homes is because fewer people are selling existing homes.
Current available inventory in South Central Kansas is about 560 homes, about a third of normal levels.
For those seeking home ownership, the Parade of Homes kicked off it’s event this weekend.
The event started this weekend and will continue on April 17-18 and April 24-25.
The Parade will showcase 116 new homes in the Wichita area, from $151,000 to $1 million.
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