The real estate market is booming in Wichita, ways to use it to your advantage
WICHITA, Kan. (KWCH) - Real estate broker Stephanie McCurdy says there are a lot of houses for sale out there, so even though inventory is lower it is not impossible to find a home. McCurdy says the low inventory is largely due to low interest rates.
McCurdy says only about a month worth of inventory is carrying over from month-to-month, because homes are selling so fast. She says usually they have an inventory of about 6-8 months that carries over each month.
McCurdy says if you compare the months of May 2020 and May 2021 there has been a 22% increase in 2021. She says she does not expect it to go down anytime soon, because the interest rates are so low.
McCurdy says this is good for buyers but great for sellers.
”For sellers this market is great, that means the market is competitive, they are still going to be receiving more offers most likely, and they are still going to be able to get a lot of terms that are plentiful for the seller vs. the buyer,” said McCurdy.
McCurdy says if you are in the market for a new home, the first and most important thing to do to get pre-qualified. She says talk to your bank so you are ready to go so if you find a home you love, you are not wasting time applying.
If you do not want to sell your home though, you can still take advantage of the market. Vanessa Steward is a loan originator from Meritrust. She says since values have gone up, people probably have more equity to tap into for home improvements.
Steward says you can do a home equity loan, a home equity line of credit, or a cash-out refinance to get cash to do some improvements.
She explained a home equity loan is typically fixed interest rate, fixed-term, and fixed payment.
A home equity line of credit is like a credit card; when you pull out funds, the payments are based on what you withdraw and as you pay it off you have more access.
With a cash-out refinance, you are still able to pull cash out with your loan, but it’s at a higher balance since you have tapped into that loan.
If you want to save money Steward says you can simply refinance.
”If someone is wanting to stay in their home and have been in their home for a while, they are not wanting to take cash out. In today’s markets, values are higher and rates are lower, so you can cash in at a lower interest rate and either save money monthly for the rest of the term of your loan. Or maybe even reduce the term and keep a similar payment and have it paid off sooner,” said Steward.
Steward says to figure out which option is best for you and your family, get with your loan officer as soon as possible and go over long-term and short-term goals, as well as your budget.
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